Trade Wars Or Crypto Whales? What’s Behind The Latest Price Surge

With all the talks of retaliatory trade wars, turmoil in Hong Kong, and global markets on the downswing, it’s hard to pinpoint why crypto prices are surging at the moment. But Tom Maxon, CoolBitX’s head of U.S. operations, believe it has less to do with macro conditions and more to do with crypto whales taking advantage of the market momentum.

Crypto Price  Crypto Whales

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Tom Maxon, Head of U.S. Operations, CoolBitX, an international blockchain security company specializing in digital asset compliance hardware and software:

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Q2 hedge fund letters, conference, scoops etc

“While markets are in turmoil around the globe, the recent bitcoin surge above $11K has a lot more to do with the 10 percent tariffs on $300 billion worth of Chinese goods announced by President Trump. This economic uncertainty has sent the Yuan into a tailspin, and China has responded with another escalation of the trade war. The Yuan has since rebounded to the key 7 per dollar level, but uncertainty is still high. For a lot of currency holders, bitcoin is seen as a safe haven.

“However, there is a much bigger issue at play in the digital asset marketplace. Billions of dollars in daily volume are handled by crypto whales and managed portfolios through over-the-counter (OTC) desks, and actually relatively smaller volume is held in exchanges that are accessible by retail investors. OTC desks are largely unregulated and therefore, it is impossible to know exactly where the inflows and outflows are coming from. These crypto whales and shrewd, large-volume traders (including exchanges themselves) will most likely leverage bitcoin’s current upward momentum toward a new high from its previous peak in order to short it to the detriment of less powerful retail traders.”


About Tom Maxon

Thomas Maxon is the Head of U.S. Operations at CoolBitX, the creator of the first mobile hardware wallet for digital assets, and Sygna, a first-to-market attestable end-to-end KYC wallet solution.

For more information on CoolBitX, visit https://coolbitx.com/.




About the Author

Jacob Wolinsky
Jacob Wolinsky is the founder of ValueWalk.com, a popular value investing and hedge fund focused investment website. Prior to ValueWalk, Jacob was VP of Business Development at SumZero. Prior to SumZero, Jacob worked as an equity analyst first at a micro-cap focused private equity firm, followed by a stint at a smid cap focused research shop. Jacob lives with his wife and four kids in Passaic NJ. - Email: jacob(at)valuewalk.com - Twitter username: JacobWolinsky - Full Disclosure: I do not purchase any equities anymore to avoid even the appearance of a conflict of interest and because at times I may receive grey areas of insider information. I have a few existing holdings from years ago, but I have sold off most of the equities and now only purchase mutual funds and some ETFs. I also own a few grams of Gold and Silver