Who is Buying the BTC dip with $400mm?

in bitcoin •  7 years ago 

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The bets are on... who can manipulate the news for 3 months, cause a flash crash and scoop up $400mm worth of BTC?

I will speculate that the mysterious owner of the 3rd richest BTC address is a group composed of banks and perhaps governments. If you believe that, it is still little money in the grand scheme of the quant easing global economy. Say institutions are comfortable putting 1% in assets as risky as measured by volatility as BTC. That would mean the total asset base is $40,000,000,000 or $40billion. Just a thought before moving on, perhaps it is not the best idea to put all of these coins in a single address...

According to BitInfoCharts, a mysterious buyer with a Bitcoin address of 3Cbq7aT1tY8kMxWLbitaG7yT6bPbKChq64 purchased an astronomical amount of bitcoins worth $344,000,000 at a blended cost basis around $8,400 from 02-09-18 through 02-12-18. In total, this Bitcoin whale doubled down adding nearly 41,000 coins for a new total of 96,000 coins worth somewhere around $900,000,000 at today’s price ($9,400).

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Source:
https://www.zerohedge.com/news/2018-02-15/bitcoin-tests-10k-mysterious-crypto-trader-dip-buys-400-million

image credit: https://buythedip.store/

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  ·  7 years ago (edited)

Thank you @liotap. As you know, many of the multi-national banks, primarily US based have not only verbally slammed crypto (JPM, BofA, GS) but have taking policy actions to hinder investment (banned credit card usage to fund crypto purchase, etc.). They have done this while many of their own largest clients (DJIA 30 companies) have embraced blockchain. Seems odd? Old wall street trick, create negative news to establish a long position. I too speculate, well actually suspect, that these same financial institutions have accumulated crypto and perhaps also on behalf of governments (acting as their custodians). They would be negligent not to.

  ·  7 years ago (edited)

@liotap and @armentor. Yes, they would be negligent if they don't even take a small position, which is required to become a legitimate market maker. Aside from their own long positions and / or purchasing on behalf of clients, financial institutions need a cyrpto position to become a legit market maker. There is too much lost business in trading for them to ignore this asset class. position.

Just a quick update - i am told we can't confirm that someone "bought" them. Can't track any of those big transactions back to a exchange wallet. Perhaps some people aggregated coins from different wallets into one segwit address.

he/she must involved in price manipulation. first convert btc to tether then re-buy btc in dip.

I agree with @liotap's assessment. Typically you will have prop desks within the firms that focus on "special situations", that is non-traditional investments. Thus I think that many of the firms have long established relatively small positions, however, given the recent surge, its appears more formal positions have been taken.

Great point re your point on propriety trading desks within the banks.

The coin is out of the bag! People can't deny it anymore. It is just interesting to hear how these very same institutions are bashing on cryptos and then make insane gains by manipulating the market at real peoples' expense, most of which can't really afford the volatility and don't know how the game is played. Such hypocrisy, and they are never held accountable.

On our way to mass adoption??
While i agree with you, if people who invest in BTC or others cannot take the vol, it is not an appropriate investment for them. no one can time any markets, and short term anything can move against you. therefore, no one should invest more than they can afford to lose. we are still in the early days of digital assets.

I agree with that. My point is that all the manipulators are pretty experienced and are aware of the market mechanics. They also are familiar with all the tools and tactics that are at their disposal to move the prices in their favor or for their purposes. However, non of that manipulation is possible if you don't have other market participants, naturally. Most of the "other" market participants are the ordinary investors who are buying into the technology of the future and hoping to make some decent gains along the way. Just like it happened with the CDO melt-down a decade ago - the institutions are using their clients' money to move the markets and in most of the cases it is their own clients who get hurt by the volatility they are causing with their actions. Again, they are able to take both sides of the bets and rake in their bonuses for the performance they achieve on the back of their own customers. Anyways, these discussions are never simple.

with some luck, we will know in a few years what really went down. this will test the transparency of the system.

Agreed. Let's hope for that the true intention of blockchain based economies survives!

Wish they also invest in Steemit:)

  ·  7 years ago (edited)

That's coming as more people are building apps to service their communities on this platform. Unlike many BC protocols, this one has no competition...

@allmonitors I posted some cool art Ludo did in Paris a few days ago. Since you are into street photography, I think you ll like the post.
https://steemit.com/photography/@liotap/ludo-in-paris

I have been puzzeled with the recent information on the subject.
Good job. I'll keep trying to follow you!!

One thing is for sure, I’m not that mysterious buyer. Even tough I was hoping for one more sell off I’m now having second thoughts that this was it. This is still our last chance to get bitcoin for acceptable price before all institutions step in.
Great Post!

I agree with the mysterious crypto institutional maniac!
I have been adding crypto recently to my portfolio regardless if it goes even lower. I like the horizontal line you draw. It makes a lot of sense.

am a new player in the bitcoin and haven't learned much about bitcoin,, I would like to ask where the wallets are safer from hecker or other.
Thanks @liotap for your sharing today it's so precious to me.

the main issue is who owns your private keys and how safe the keys are. Think about it like keys to your personal safe. the concept at a high level is monetary sovereignty. The private key is used to access the coins that are associated to to a public address. so whoever has the private key of the address above, has a lot of coins!

As an individual, most likely you would want to buy a hard wallet such as a trezor (trezor.io) so that this device can store your key safely store your keys and therefore your coins.

trezor.io ..?
I've heard it, thanks for your suggestion and enlightenment,,
I will try your notice and learn more.

I'm really not sure anymore i recently found out that the hashing algorithm SHA-256 was made by the NSA though i don't know if this is true, i would definitely approach with caution whatever the case...

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bill's happy and very skinny

Good job

Thanks you very much @liotap
I like your post.