For the past years, the world saw the steady, promising rise of the price of the Bitcoin since its inception in 2009. However, it has recently slowing down to a halt and it seems that some fingers are pointing at the bitcoin whales increasing interest at this asset and potentially accumulating for being responsible.
Are the whales actively accumulating?
Who are the whales and what distinguishes them from the retail investors? As the term connotes, they are the ones who have the highest buying capacity to purchase any asset and they are usually seen to come up to the surface every now and then. So while there are investors who invest in Bitcoin, the whales play on a completely different level.
Q2 hedge fund letters, conference, scoops etc
Institutional investors' interest in Bitcoin is picking up and they reportedly often purchase digital currency from whales through over the counter (OTC) trades. In this way, prices can be negotiated. Whales often come up in conversations about Bitcoin and this will continue when the Bitcoin prices drop drastically as they are accused of market manipulation because the digital space for Bitcoin is still relatively small and the large-scale moves that whales perform on cryptocurrency exchange affect the market significantly.
Diar, a data analysis company that regularly provides insight into the digital currency world, confirms that there has been a shift with Bitcoin supply. They note that institutional investors have begun accumulating large amounts of digital assets at discounted prices.
Bitcoin considered as a diversification option by institutional investors
Forbes columnist Billy Bambrough reports, "Investors are constantly looking for new ways to diversify their portfolios as traditional assets and markets have begun to move more closely in sync with one another. Increasingly, savvy investors recognize that Bitcoin and other digital currencies may have unique investment characteristics that provide diversification far beyond the basic 60% stock/40% bond portfolio allocation.”
Bitcoin whales: beyond institutional investors
But not all whales are consisted of organizations. In fact, Tyler and Cameron, more popularly known as the Winklevoss twins, are two of the most famous crypto investors reportedly owning an estimated $11 million in Bitcoin 2013.
Bill Miller, a Bitcoin enthusiast and founder and chief investment officer of Acunari, founded a hedge fund about three years ago and has reportedly made 46% returns on investments in Bitcoin. Bloomberg reported that the hedge fund’s largest positions were ADT Inc (NYSE:ADT), Amazon.com, Inc. (NASDAQ:AMZN) and Avon Products, Inc. (NYSE:AVP).
James Richman, dubbed as one of the greatest investors of our time, is reportedly rallying behind the developments of the cryptocurrency market and Blockchain technology. There is an increased interest and demand from his clients for him to increase their cryptocurrency investments. His clientele is composed of some of the wealthiest families and individuals in the country.This push will most likely make the billionaire and philanthropist accumulate more Bitcoin through over the counter transactions.
Ex-hedge fund manager of Fortress Investment Group Michael Novogratz said 20 percent of his net worth is attributed in Bitcoin and Enthereum, over $250 million in profit. Despite the statement he made before that cryptocurrency is a bubble, he continues to invest in Bitcoin technology-related projects through Galaxy Investment Partners, a cryptocurrency investment firm that he established.
“I feel better about Bitcoin today than I have at any time in my career,” Novogratz said during an interview on Bloomberg Television from a conference in Las Vegas.
Since its first release in 2009, the Bitcoin has reached a peak price of about $20,000 per Bitcoin but now has remained on a plateau at about $10,000.
Article by Richard Wynterly
