• 547 days Will The ECB Continue To Hike Rates?
  • 547 days Forbes: Aramco Remains Largest Company In The Middle East
  • 549 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 949 days Could Crypto Overtake Traditional Investment?
  • 954 days Americans Still Quitting Jobs At Record Pace
  • 956 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 959 days Is The Dollar Too Strong?
  • 959 days Big Tech Disappoints Investors on Earnings Calls
  • 960 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 962 days China Is Quietly Trying To Distance Itself From Russia
  • 962 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 966 days Crypto Investors Won Big In 2021
  • 966 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 967 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 969 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 970 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 973 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 974 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 974 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 976 days Are NFTs About To Take Over Gaming?
Are NFTs About To Take Over Gaming?

Are NFTs About To Take Over Gaming?

Gamers are spending billions on…

  1. Home
  2. Cryptocurrencies
  3. Other

“Tokyo Whale” Takes A Breather After Selling $400M In Bitcoin

Whale

Bitcoin’s volatility isn’t just random: When crypto whales start selling off huge amounts of coin, sentiment takes a beating—like it did last week.

While rumor of a hack at Binance and playing fast and loose with customer coin last week took its toll on prices, as talk of an SEC crackdown on exchanges, crypto whales are major market movers.

Last week, Bitcoin lost over 20 percent, and it’s still down below $9,000 today.   

(Click to enlarge)

But news that a ‘Tokyo Whale’ is done with its current sell-off of bitcoin to pay creditors has crypto enthusiasts optimistic that the coin will rebound. Related: Another Trillion-Dollar Wealth Fund Eyes Crypto Exposure

Last week, markets learned that trustees of the now bankrupt Tokyo Mt Gox exchange sold off $400 million in bitcoin over the past few months. They also learned that there’s still $1.7 billion in bitcoin left to unload to pay creditors.

This major dumping of bitcoin, claim some analysts, has shaken the market since the beginning of the year. 

Even though there’s reportedly over a billion more bitcoin for the ‘Tokyo Whale’ to dump, crypto bulls are ready for a breather: There will not likely be any more liquidating until the fall.

Mt Gox still needs regulatory approval to unload the rest of the bitcoin.

In 2014, Mt Gox was closed down and filed for bankruptcy after the theft of 850,000 bitcoin from the exchange. In 2015, the case of the mysteriously missing coins landed CEO Mark Karpeles in jail in Japan. He has since been released on bail.

The question is whether the six-month dumping reprieve is enough to bring bitcoin back above $10,000.

In the meantime, Thomson Reuters is trying to make it easier to gauge bitcoin sentiment, adding it to its financial data feeds.

The gauge will use metrics such as greed and fear for investors to hedge opportunities.

But gauging bitcoin sentiment is as challenging as determining its fundamental valuation, which go hand in hand. 

Not only is it “fascinating from a psychological and neurological” perspective, it’s also not “grounded in solid economics”, Nobel prize-winning Yale economics professor Robert Shiller told the New York Times.

Indeed, bitcoin sentiment is cryptic at best. Bulls are raging bulls, and bears are exceedingly grizzly. Even when it’s taking a major beating, the bulls can see it reaching $100,000 eventually, while the bears say it will plummet all the way to the bottom, with Goldman Sachs calling it zero earlier in February.

By Fred Dunkley for Safehave.com

More Top Reads From Safehaven.com:

Back to homepage

Leave a comment

Leave a comment