Bitcoin is maintaining the psychologically-significant $10,000 level tonight, much to the crypto-market's relief. We may spend some time here rebuilding a base before we start to make a move up towards the $12k area. An investigation of how Bitcoin recovered from the recent dip to $6k presents an interesting answer.
It would seem that one very large whale, who already controlled 55,000 BTC, bought 41,000 more from 2/8 to 2/13, at a rough cost basis of $8400. That brings "their" total holdings to 96,000 BTC, or approximately $960,000,00, or just shy of $1 Billion US. Though barely a half percent of the "advertised" market cap of Bitcoin (the true full market clearing price would be much lower), this still represents a rather large whale who has just doubled down on their investment hard. Let's all hope he is correct in his attempt to make a bottom call.
Positive implications for price aside, this is certainly an alarming amount of (wallet) centralization for a coin as large and systemically important as Bitcoin. I have no doubt that this trader could move markets substantially on his own if he chose to. Whether he could profit from pumping and dumping his own coins would be a matter of market and order-book conditions, but it's certainly a concern for anyone trading these markets. There's a good reason that a wider distribution is almost always considered an element of a healthier cryptocurrency.
Regular readers will know I'm not a huge fan of Bitcoin's fundamentals at this point. I want it to succeed for the rest of the market, but frankly, it's transaction times, fees, and security all leave much to be desired and those characteristics (save perhaps security) all seem actively prevented from evolving properly as described in the whitepaper by the Core team itself, who appear to be likely to profit off the status quo being maintained for now. Without traffic, one can not charge for toll roads. Diversify accordingly and do your due diligence on everything you own, even Bitcoin.
As a reminder from BitInfoCharts, here is the current distribution of Bitcoin among all network addresses:
In completely unrelated news, I spotted this candle on the Livecoin exchange where Bitcoin either went to 12k briefly last night, or their exchange bugged out. Either way, I record it here for the record:
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Sources: ZeroHedge, Livecoin, Google, Cryptowatch, Bitfinex, BitInfoCharts
Copyright: LiveCoin, Zero Hedge, Cryptowatch, Visual Capitalist
Even if it was not the short term bottom, this wale will be good in the long term. This year many exiting things will happen what simple doesn't allow the price to stay on these levels seen the limited supply.
nice thinking
We all know where it's heading. ^
Big money is not in crypto yet. It will be more buys like this in the future.
That is a bold and crazy move! Hopefully it has a positive impact overall!
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No words for 400 million dollars.....
resteem this info..
Strange a whale capable of control whole crypto value.
I think that whale is one of those hypocrites that says bitcoin is a bubble, while quietly buying more of it. Probably a bankster or some government, either way, an hypocrite for sure in my opinion.
upvote for me
will you?
bitcoin will eventually cross its limits and touch skies just wait and watch...
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Good Information
Good to see you back!
I am not a fan of bitcoin either mainly because of the fees and the time taken for the transactions. I believe bitcoin is highly overvalued at 10k.
There are better coins than bitcoin which I would like to become chart toppers in near future.
With all that negative stuff said about bitcoin, I strongly believe that bitcoin is still the king and we might still see bitcoin gaining huge and being the driving force behind all cryptocurrencies.
Bitcoin is going to be like the "Painting of Monalisa" which was sold for billions probably.
Bitcoin is going to have the same intrinsic value like the painting of monalisa and is heading for millions if not billions.
Nice one
I knew bitcoin would rise, its only a matter of time. This is a good news because bitcoin has an indirect way of affecting other cryptos prices.. Including @steem
That a very great news . Two days back my btc wallet was at 170 USD, to day it has increased to 208 USD. 28 USD increment in my account. just patient to earn more when btc reaches high
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This is awesome
Good news for btc lovers, "it is going to make crazy us very soon. "
I hope "nothing is impossible in btc."
I wonder where Bitcoin will be by the end of 2018. I'm gonna say anywhere from $30,000 to $50,000.
please follow
Very interesting, great analysis. I dont super understand bitcoin yet, so all the coins are in one account? Isn't that risky? wouldnt it be better to have it in multiple wallets just in case someone guesses the private key?
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Wow love your work
We all know where it's heading. ^
I am so happy btc has reached $10k,i pray it keeps going up
Bitcoin is largely on an upward trajectory, the only caveat to that would be governments intervening, If China ban mining operations for example, that could bring the price crashing, given that China is responsible for around 70% of all BTC mining, if they stop, the network would have serious transaction issues
That (nearly) $1 billion whale is GS. Or maybe JPM. Take your pick.
Would be nice to see Bitcoin pause at 10k allowing the rest of the altcoins to catch back up.
Interesting.. maybe some inside news or something.
It's obvious to me that confidence is coming back to the market, I'm still on the fence on buying heavy into BTC, but none the less, days don't look as grim anymore.
Appreciated your writing quite a bit, I will make sure continue to follow your posts..
Cheers
Who has a lazy $1 billion handy to dump into the market? Large hedge fund or banking institution. Here come's the Lightning Network.
DISCLAIMER - I agree that BTC is not the best, but I want it to hold up for the sake of the broader market until a new market leader can be identified.