One of the few publicly known Bitcoin whales out there describes three scenarios that could result in Bitcoin suffering a sharp downturn.
Pseudonymous whale Joe007, known for placing big bets on the Bitfinex crypto exchange, expects many early investors to pull out once the price of BTC is “high enough”.
He also warns that Bitcoin is not immune to a global market reversal similar to that seen earlier this year, which briefly caused BTC to drop from around $ 9,100 to around $ 4,000.
“The macro-market collapse is a possibility and ‘crypto’ won’t be any more immune than it was in March.
Once the BTC price is high enough, holders will cash out en masse, causing a sudden shift in equilibrium that causes the parabolic curve to blow off. It’s all about timing.
The whale also hints at potential sales from investors who are expected to one day receive BTC that was frozen when the crypto exchange crashed. Gox.
“Bad news is usually ignored in the bull part of the cycle. Only a real shift in the relationship between supply and demand matters.
The Gox thingy can have a real impact if that 160,000 BTC actually gets into the hands of long-suffering Gox customers. Which definitely won’t happen tomorrow. “
The whale says that both small and large Bitcoin investors need to demonstrate that they are ready to buy Bitcoin at the current level.
“If YOU are not ready to buy from ATH, why would you expect institutions to do so?” Come on, show conviction, lead by example. Maybe others will follow. “
As for the altcoin market, the whale says he doesn’t take it for granted that altcoins will continue to rally after bitcoin. Pointing to the size of the altcoin market cap of roughly $ 200 billion, he says investors must now invest billions of dollars in the market to fuel new rallies.
“… advocates [are] I’ll tell you as soon as BTC falls, the season will begin. Which I personally think is total bullshit. In the next bear phase, I expect Alts to lose even more of their capitalization. “
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