Bitcoin whales selling to institutions as Grayscale adds 7,188 BTC in 24 hours

[Charles-Tim]

Was it not surprising that the price of bitcoin falled to $16600 recently from a price over $19000, but the price later increase back and having a resistance at $19000. Noramlly, people would have expected the price of bitcoin to crash again when it falled, but the price rose back to over $19000. In today's crypto news, I read it is as a result of institutions buying bitcoin from bitcoin whales. Before the fall, many whales move bitcoin to exchanges, and we know it will not be for any two reasons but to sell the bitcoin, it could be some of the bitcoin that will be sold, but that known to them.

After that, the price of bitcoin still fall but still rose back, which would be as a result of institutions like Grayscale, Square and PayPal that are buying the bitcoin from the whales and also from miners. Expecially Grayscale proving to be one of the reasons.


Grayscale Bitcoin buys versus flow in November 2020. Source: Coin98/ Twitter

Grayscale bought more than the mined bitcoin in November, 2020. Simultaneously, this week saw Bitcoin break all-time highs and challenge $20,000, only to encounter massive selling pressure.

Having bounced off lows of $18,100 and returned to circle $19,000, BTC/USD looks primed for another test of the seminal level, but selling dynamics remain unusual. With sell walls at $20,000 still firmly in place, longtime hodlers and whales looking to exit have reliable buyers in the form of Grayscale and other institutions. Evidence points to increasing inflows from whales to exchanges this week, something which coincided with the $20,000 attempt. Should selling already be keeping prices down, BTC should thus be finding its way from whales to the stronger hands of Grayscale and its clients.

https://www.google.com/amp/s/cointelegraph.com/news/bitcoin-whales-selling-to-institutions-as-grayscale-adds-7-188-btc-in-24-hours/amp

[Vaskiy]

Nothing to get surprised, because the market is moving without any external pressure. Based on the whale moves and the institution investment the market is said to be bouncing. This is true to some point, beyond that is the circulation. The market circulation have been increasing with time due to the large scale acceptance and adoption of cryptocurrencies and blockchain development. Level of investment increasing above the total sum mined shows the interest of institutions on bitcoin investment.

[fillippone]

I have been closely monitoring Grayscale flows recently.

If you are a reader of my thread:

Everything you wanted to know about Grayscale BTC Trust but were afraid to ask!

Those flows actually shouldn’t surprise you.
As I said elsewhere the correct way of looking at it is not: “Grayscale bought more Bitcoin than daily supply” as Grayscale is not buying newly mined coins. Rather they look at the 18 millions coins already mined. So the correct way of looking at it is : “Grayscale is buying coins from weak-hands whales”.

[dothebeats]

These moves from the whales are bold in such a way that they continue to acquire more bitcoins without any hesitations at all. It’s as if they know that the steam is not gone and that they will be able to profit more even if their most recent buying points are mostly at the top. I wouldn’t blame them though. I wouldn’t blame them though. Sell pressure is almost non-existent on exchanges across the board. And even if the price comes down right now, they’d still be in the green based on their averages, most coins of which were acquired in $13k below.

[Husires]

It was someone's statement in Grayscale that if some people think that they will stop buying, this is the beginning, but I do not think that a single entity can move the price from $ 16,000 to $ 19,000.
You need a lot of liquidity, otherwise one of the platforms will give a completely different price from the rest of the platforms, and I don't think it will directly lead to an increase in the price.

bitcoin martketcap need too many work and cleaning

[passwordnow]

I've read of that news even earlier before bitcoin reached $19k. Grayscale has been doing that, IIRC, since the earliest of first quarter - February 2020.
Grayscale Investments bought up to 33% of all newly minted bitcoin over the last three months, as the asset manager continues to stockpile major cryptocurrencies.

[CarnagexD]

Correct me if I am wrong, but I feel terribly bad for the small investors who are forced to sell when the price dropped to $16600 as you have mentioned. Goes to show how much power these whales have even over our bitcoins. One sell and *poof*, everything gone.

I've read of that news even earlier before bitcoin reached $19k. Grayscale has been doing that, IIRC, since the earliest of first quarter - February 2020.
Grayscale Investments bought up to 33% of all newly minted bitcoin over the last three months, as the asset manager continues to stockpile major cryptocurrencies.

That being said, what I'm more scared about is these corporations jumping into the cryptocurrency train. They weren't supposed to be here in the first place since bitcoin is for the free people, and I do appreciate the fact that with them on the industry, it allowed more people to invest. However, I also see this as them doing what megacorporations are good at, capitalism. Hopefully we find a way to put the power back to the people and to tip the scales in our favor.

[tippytoes]

Correct me if I am wrong, but I feel terribly bad for the small investors who are forced to sell when the price dropped to $16600 as you have mentioned. Goes to show how much power these whales have even over our bitcoins. One sell and *poof*, everything gone.

I've read of that news even earlier before bitcoin reached $19k. Grayscale has been doing that, IIRC, since the earliest of first quarter - February 2020.
Grayscale Investments bought up to 33% of all newly minted bitcoin over the last three months, as the asset manager continues to stockpile major cryptocurrencies.

That being said, what I'm more scared about is these corporations jumping into the cryptocurrency train. They weren't supposed to be here in the first place since bitcoin is for the free people, and I do appreciate the fact that with them on the industry, it allowed more people to invest. However, I also see this as them doing what megacorporations are good at, capitalism. Hopefully we find a way to put the power back to the people and to tip the scales in our favor.

Anyway, even if these mega corporations will join the crypto market, I don't think they have the solo power to dictate the price in the market. Because if they do, then the btc price may not increase as what we want to. It is the supply and demand why we are experiencing the price change. So if they will not create demand then the market will eventually die. So having all sorts of investors in crypto will do good in the market. Not that only few people or institutions are holding the neck of btc price. It is not good on their agenda if they will just amass the large percentage and control the market.

[cryptoperkele]

Isn't this exactly what we need for healthy mooning?

Big companies are bringing fresh blood and they need a lot of market liquidity to buy tons of bitcoin. Otherwise they would have to buy from thin sell walls, and that would make the rise parabolic, fast and unsustainable.

[cryptomaniac_xxx]

Correct me if I am wrong, but I feel terribly bad for the small investors who are forced to sell when the price dropped to $16600 as you have mentioned. Goes to show how much power these whales have even over our bitcoins. One sell and *poof*, everything gone.

I've read of that news even earlier before bitcoin reached $19k. Grayscale has been doing that, IIRC, since the earliest of first quarter - February 2020.
Grayscale Investments bought up to 33% of all newly minted bitcoin over the last three months, as the asset manager continues to stockpile major cryptocurrencies.

That being said, what I'm more scared about is these corporations jumping into the cryptocurrency train. They weren't supposed to be here in the first place since bitcoin is for the free people, and I do appreciate the fact that with them on the industry, it allowed more people to invest. However, I also see this as them doing what megacorporations are good at, capitalism. Hopefully we find a way to put the power back to the people and to tip the scales in our favor.

I wouldn't say that it was a force sell, small investors should have known better that if they sell their bitcoins then obviously someone are going to scope it from them. So it's possible that Grayscale are just waiting in the wing, for those weak hands to sell their bitcoin. It's the business of making money. It's not that they threaten someone to sell, it's not like that, so everyone has a choice, if you feel nervous and panic because the price suddenly goes down to $16k then it's your lost.

[Upgrade00]

Correct me if I am wrong, but I feel terribly bad for the small investors who are forced to sell when the price dropped to $16600 as you have mentioned.

They panic sold and were not forced to. A drop from the range of 19k to 16k is about 18%, this should not be enough to shake one out of their holdings especially as it's coming after the asset has almost doubled in value over few months. There would always be such price corrections in the market, and it usually shakes out weak hands who would have limited organic growth.

That being said, what I'm more scared about is these corporations jumping into the cryptocurrency train. They weren't supposed to be here in the first place since bitcoin is for the free people,

Bitcoin is for everyone, it's a free asset and anyone who is interested can purchase some, even governments; but no one can control it.

[pixie85]

Not necessarily from whales. It's probably from traders.

Usually the majority of volume on exchanges is made by traders who exchange between each other. Bull buy, bears sell, but they don't exit after selling or buying. They stay on the exchange waiting for their prediction to come true.

Those who became bearish at 19500 and sold 5-6 days ago instead of selling to bullish traders sold into the hands of investment funds and those coins went out of the exchanges.

People were writing about this trend of decreasing supply on exchanges more than a month ago.

[Lucius]

As I said elsewhere the correct way of looking at it is not: “Grayscale bought more Bitcoin than daily supply” as Grayscale is not buying newly mined coins. Rather they look at the 18 millions coins already mined. So the correct way of looking at it is : “Grayscale is buying coins from weak-hands whales”.

Especially if we know that Chinese miners are having trouble selling their mined BTC, at least if we believe the news we’ve had a chance to read recently. After all, such coins are called "virgin bitcoins" and some say that they have a premium value between 10% -20%, so I don’t think Grayscale would even be interested in such a purchase.

I also agree that real whales know the potential that BTC has, so they trade very wisely with it - by making a profit when the price is at the top, and by buying when a correction occurs. It will be interesting to observe how many of these weak-hands whales actually exist and how heavy they are, that is, how long they can satisfy the appetite of the largest whale and all those who try to follow it.

[darewaller]

Grayscale has been buying a lot of coins but I am not sure if this was the full month. I believe that is the total number they have and not the amount they bought in November alone. I might be wrong, we do not know how much they bought, well you might but I do not, but I know that they have bought $38k during last spring and summer, which means either they bought $38k bitcoins in 4-5 months total and then $55k in a single month, or maybe this is wrong to assume it was in all one month.

In any case, they are definitely bringing a good light into bitcoin and showing the world that bitcoin could be profitable if you are a huge company that can wait for a while (they didn't even had to wait) and that will only result with many more big companies coming in and buying tens of thousands of bitcoins.

[crwth]

Those weak hand whales could have more BTC than anyone because I know you wouldn't just give it up. Maybe cashing in a little Of your stash is needed or something. It's hard to sell that many coins immediately, so perhaps as institutions buy more Bitcoins, why not sell it and have that direct trade. I wouldn't think to deposit anything close to that amount, if I had one, towards an exchange

[zasad@]

https://www.coindesk.com/microstrategy-50-million-third-purchase

MicroStrategy CEO Michael Saylor announced his company’s third bitcoin purchase on Twitter Friday evening, per SEC filings the same day.
Saylor purchased 2,574 bitcoins for $50.0 million in cash bringing the business intelligence company's treasury holdings to approximately 40,824 bitcoins.

https://twitter.com/michael_saylor/status/1334990791496884224

[mindrust]

I wonder if Grayscale knows something that others not or if they are only raising the price so they can dump from a higher price...

There are lots of rumors saying there will be a big monetary reset and bitcoin will be the new world reserve currency.

I wonder if Grayscale believes it really.

[suzanne5223]

Those weak hand whales could have more BTC than anyone because I know you wouldn't just give it up.

They were actually opportunist whales which only joined the crypto investment scheme to manipulate and also profit from it only, the best every genuine crypto enthusiast have to do is to accumulate more BTC whenever they dump it or in the future they may cause a big problem on the market because crypto haters may use them as their weapon.

[jaysabi]

I have been closely monitoring Grayscale flows recently.

If you are a reader of my thread:

Everything you wanted to know about Grayscale BTC Trust but were afraid to ask!

Those flows actually shouldn’t surprise you.
As I said elsewhere the correct way of looking at it is not: “Grayscale bought more Bitcoin than daily supply” as Grayscale is not buying newly mined coins. Rather they look at the 18 millions coins already mined. So the correct way of looking at it is : “Grayscale is buying coins from weak-hands whales”.

Weak hands sell when the price is falling, not rising. This doesn’t fit the definition at all. People have all manner of different reasons for selling or buying, it can’t be summed up in a two dimensional way as either weak or strong hands. Profit taking is not a sign of weakness, especially as the law of big numbers kicks in more and more. Bitcoin can’t continue the pace of price acceleration, and as it slows or stops, there are better opportunities elsewhere. That’s more what I see selling as at these prices.

[fillippone]

Weak hands sell when the price is falling, not rising. This doesn’t fit the definition at all. People have all manner of different reasons for selling or buying, it can’t be summed up in a two dimensional way as either weak or strong hands. Profit taking is not a sign of weakness, especially as the law of big numbers kicks in more and more. Bitcoin can’t continue the pace of price acceleration, and as it slows or stops, there are better opportunities elsewhere. That’s more what I see selling as at these prices.

I see your point and you are correct.
I might have oversimplified.
Of course a whale holding from 1 USD and selling at 19,000 cannot be defined “weak hand”, as the PayPal buyer at 19,000, ready to sell at the first 2k red candle cannot be defined “strong hand”.