Coinbase Whales Bought the Bitcoin Dump
Bitcoin hasn’t had the best week. After rallying past $13,000 for the first time in over a year, the cryptocurrency stumbled. Hard. After flirting with the $13,000 price point for all of some six hours, Bitcoin fell, tanking by $2,000 in the following day. In fact, as of the time of writing this, BTC sits at $11,800, basically flat on the day, but wayyyy down on the week.
It isn’t too clear what triggered the sell-off. Some have looked to comments from both the Federal Reserve chairman, Jerome Powell; and U.S. President Donald Trump.
Speaking to a group of regulators, Powell did give Bitcoin the classification of a gold-like store of value, but he went on to worry the United States about the potential implications of a system in which the systems of Libra or other cryptocurrencies were in control of the economy or certain parts of society.
And Trump just flat out bashed Bitcoin and its ilk, accusing cryptocurrencies of being backed by nothing but “thin air” and facilitating potentially criminal behavior.
Others have claimed that the collapse was catalyzed by a simple case of buyers failing step in, resulting in a rapid depreciation of Bitcoin as swing investors looked to secure profits.
Anyhow, there are reasons to suggest that the dump may soon end. As spotted by a Reddit user on the official Bitcoin subreddit, a majority of the top 10% of Bitcoin investors (by account size) on Coinbase were buying BTC, presumably while the bottom 90% were selling. In fact, on July 11th, 77% increased their net Bitcoin position and 23% decreased.
It is unclear whether or not the data set includes users of Coinbase Pro or only Coinbase.com.
Why It’s OK to be Optimistic
So, why are Coinbase’s resident whales seemingly scooping up BTC as fast as possible?
Photo by André François McKenzie on Unsplash