The real estate whale? The old man on Wall Street has arrived, the price will fluctuate widely

Whales don’t move when BTC is going sideways

Bitcoin price was almost unchanged yesterday around the $ 33,000 level. A number of altcoins are already in trend with BTC. After BTC went sideways for more than a month, Coincu conducted a small survey of followers about people’s reactions to BTC.

The results showed that the majority of participants did nothing and continued to hold BTC (60.84%). The remaining 29.97% take advantage of the falling price and continue to buy at a good price. A small percentage of you will sell some or all of your BTC. Most of the respondents are long-term investors.

BTC has been moving sideways lately, the on-chain situation has not shown any significant fluctuations. The average number of BTC that is deposited on the exchange (blue line) or withdrawn from the exchange (green line) is getting smaller and smaller, the entry and exit of BTC exchanges is low.

CryptoQuant also shared data showing that from the beginning of May to today, when BTC began to show signs of decline, there have been a number of waves of large amounts of BTC leaving Coinbase Pro. This is a sign that whales are collecting BTC and taking it off the exchange. However, during the BTC flat we see no signs of whales collecting BTC and almost no movement.

Most recently, the selling power in the market came mainly from a group of miners and individual investors. The excitement of the large investors collecting BTC has cooled.

The company that is continuously buying BTC in the market is the Grayscale fund, launched in mid-February 2021, which almost stopped. The amount of BTC this company is storing has not increased but is also showing signs of a slight decrease.

One of the reasons Grayscale has reduced its purchasing power is because of its indirect investment mechanism in BTC through its GBTC shares. Investors can deposit money or BTC at Grayscale to buy shares of GBTC. You can then sell the shares received on the market for 2-3% higher and then the shares are blocked again for 6 months. Lately, many institutional investors have been buying Grayscale shares instead of buying BTC, as GBTC shares are being sold in the market at a discount to BTC.

The BTC price fluctuates more rapidly in the short term

Large investors or institutional investors have dealt a lot with crypto. One of them is the mutual fund of billionaire George Soros, also known as the “man who crashed the British pound,” which has dealt with other crypto investments besides Bitcoin.

However, Alex Jones made the strange claim that billionaire George Soros offered him $ 5 million in 2011 to “pump” Bitcoin.

When large investors get into the crypto market, it also helps the market get stronger. At the same time, big investors are also those who can manipulate the market, which is often what happens in all financial markets such as gold, real estate, stocks, etc.

Some high-profile moments like the bursting of the dot-com bubble, a deluge of information from major investors gave negative information about technology companies and dropped prices. Back then, the same companies were buying at low prices.

Or the 2008 financial crisis when banks eased lending making it easy to borrow money to buy a house and spark a real estate bug. Big companies, billionaires benefit from this event.

Similar to the crypto market today, large investors or banks speak out and spread negative news about BTC or crypto. When the price goes down, they are the ones who buy BTC at low prices. In the short term, the entry of large investors into the market will also lead to higher price volatility.

In addition, the hearing of US House of Representatives Financial Services Committee has a rather shocking title: “America Is Hot: Will Crypto Mania Lead to Financial Independence and Early Retirement or Financial Devastation?” happened last day.

Although the BTC market is still very small, a fraction of the gold market, the US House of Representatives held a separate hearing on BTC and crypto that showed the importance of BTC and crypto. Recently, the U.S. government has also noticed that many hedge funds, large mutual funds, have moved into the crypto market quickly. People’s demand for investment and the use of related services is increasing rapidly.

Important topics related to crypto were discussed at the hearing. As prominent as the strong fluctuations in the crypto market? However, despite the sharp fluctuations in price over the years when cryptocurrencies like Bitcoin still exist and prove the resilience of this market, it does not require a government to put in place an economic bailout. The current BTC market as well as the shares of leading large companies such as Facebook, Amazon before. You can read more about the hearing Here.