Whale investors are scooping up Bitcoin in huge amounts, which is a good sign for the future value of BTC, says crypto strategist and influencer Willy Woo.
In a tweetstorm, Woo calls Square’s recent purchase of 4,709 BTC and MicroStrategy’s 38,250 BTC investment as “the tip of the iceberg.” In the past eight months, he says investors have reduced the speculative stockpile of Bitcoin on exchanges by 250,000 BTC, worth about $2.762 billion in total at time of writing, according to CoinMarketCap.
It’s likely much of this newly purchased BTC is landing in the hands of high net-worth individuals, Woo explains.
The analyst says this is a very bullish development.
“This is one of the few times in my Bitcoin career where the fundamentals (on-chain data and metrics from infrastructure players) are in moon mode, yet the market is not woke to it. They will be by 2021. This is an opportunity I’ve not seen since mid-2016.
The market is not ‘woke’ because price action is a very laggy indicator of fundamental demand and supply. Mania phases of a bull market is when everyone is ‘woke’ and it’s too late. Right now supply is being hoovered up.”
Unlike many analysts, Woo even feels the recent BitMEX charges are a positive for Bitcoin. Last week, the U.S. Commodity Futures Trading Commission (CFTC) announced that it was charging five BitMEX operating entities and the crypto trading platform’s three founders, Arthur Hayes, Benjamin Delo, and Samuel Reed, with violating multiple CFTC regulations.
The U.S. Department of Justice (DOJ) has also charged the three founders and its head of business development, Gregory Dwyer, with violation of the Bank Secrecy Act.
Woo says the BitMEX charges should be good for the long-term health of the crypto industry.
“Fundamentally the market is scared for all the wrong reasons. MEX did NOT get hacked. No traders will lose coins. Futures exchanges will clean up their practices. We’ll see less volatility, less scam-wicking, more spot volumes, more organic moves, more institutional money.”