The hail of bitcoin buying could be set to continue. The flows into the Spot Bitcoin ETFs are likely to be maintained, or even increase, and the selling out of the Grayscale Bitcoin Trust (GBTC) looks to be about to dry up. Mr 100 pauses his buying.
Big sell day on Friday
Last Friday was a big day for selling out of the Grayscale Bitcoin Trust (GBTC). No less than $608 million in $BTC was sold over the day. Did that make a dent in the price of $BTC? Not at all. Black Rock’s IBIT fund redressed the balance on its own, with an inflow of $680 million.
The bitcoin price went sideways over the weekend, and then on Sunday $BTC broke out of its triangle and started heading in a northerly direction once again. The all-time-high could even be reached by the end of this week given that the king of the cryptocurrencies is currently trading at around $65,000.
Obviously, with such a strong selling day from Grayscale, the net $500 million or so in inflows that has been taking such a big chunk of $BTC out of the market almost daily, was greatly diminished on Friday.
Be that as it may, the Digital Currency Group (DCG) selling ($1.3 billion), that accounts for much of the Grayscale outflow, should very soon be exhausted. Once this comes to pass this week, we can potentially return to the same massive daily inflows as before.
Mr 100 pauses his buying?
On the subject of strong inflows, the enigmatically named “Mr 100” appears to have paused his buying on Friday. This is the first day since November of 2022 that this wallet address has failed to buy its customary amount of $BTC.
This amount is hardly chicken feed either. The modus operandi of Mr 100 generally has him buying three chunks every day, each one very close to 100 BTC, on a 24/7 basis. The 300 bitcoin each day has accumulated into a pile worth around $3 billion, meaning Mr 100 could become one of the top 10 bitcoin whales very soon.
Much speculation abounds on social media over who Mr 100 might be. Some say he could even be a nation state, and this could be in the form of a sovereign wealth fund. That said, most of the buying from this particular wallet takes place during the Asian session, and some are pointing the finger at one of the big Asian exchanges.
Even taking this into account, Michael Saylor recently said that it would only take as small a number as 10 billionaires to start seriously buying, and the price would quickly rocket beyond anything we could so far imagine.
Retail generally absent from crypto market so far
Amidst all this buying, mainly from institutions, it does seem such a shame that retail is mainly absent from the market so far. The likes of Jamie Dimon and his banking pals have strewn enough misinformation across the mainstream media to scare retail off for now.
As usual, the herd will probably come back at the top of the market, and the institutions will be able to sell their bags back into the dumb money, ready to rinse and repeat next time. All the while, the UK government, with the help of the banks, continues to cut its citizens off from nearly all exchanges from where they used to be able to buy bitcoin. The world is not a fair place. Educate yourself on bitcoin and what the monetary system is really doing to you while you still can.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
