A crypto whale who often ranks at the top of the Bitfinex leaderboard, but struggled in April, says the Bitcoin halving may pummel traders looking to make a quick buck.
The pseudonymous trader who goes by the name Joe007 says BTC is likely overhyped as the halving approaches. Joe says he believes the event, which will slash the rate of new BTC entering the supply by 50%, will turn out to be a big disappointment to those looking to ride an immediate wave after the halving executes on May 12th.
The whale says Bitcoin continues to rally on razor-thin volume which has him unconvinced that retail demand is strong for a sustainable rally.
“The price could be made pumped to $20k or dumped to $2k literally tomorrow, in a market this thin.”
As for Tether Limited’s increasing printing of USDT, Joe says it’s because savvy traders are selling their BTC for the leading stablecoin. That, he believes, has left Tether with a need to mint more tokens.
Yes, people with brains exited from crypto into fiat to the tune of 2.5-3B USD equivalent, while suckers attracted by halvening hype pulled in with vengeance.
— ʲᵒᵉ (@J0E007) May 4, 2020
This isn’t the first time the whale has cited low volume as a primary reason he’s not bullish on Bitcoin in the near term.
Earlier this year, Joe said that tactics like spoofing, where traders place large buy orders without the intention of actually filling them, are running rampant to create the illusion of strong demand.
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/Chanwut Jukrachai