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It isn’t a secret that the cryptocurrency market is rife with eccentric investors and entrepreneurs, looking to play this revolutionary technology to their advantage. Reports suggest that one investor/entity is looking to scoop a large portion of all Bitcoin (BTC) in circulation, potentially to “dominate the market.” Scary, right?

Bitcoin Whale

Investor Searching For Millions of Bitcoin

According to a recent report from Forbes, the Dadiani Syndicate, a little-known yet key firm in the cryptocurrency market, purportedly has a large request to fill. The group, which touts itself as an investment “platform for […] maximizing your digital holdings”, is much like an over-the-counter (OTC) desk, but with a likely much larger influence.

In fact, Dadiani suggests that it has helped clients who have a handle on a jaw-dropping 25% of the Bitcoin market. Art dealer Eleesa Dadiani, who spearheaded an Ethereum-based sale of part of one of Andy Warhol’s art pieces, told Forbes more about the Syndicate’s activities:

“When I founded the institution it was a way for people to cash out of their cryptocurrency asset… But we found there were people who wanted us to assist them in buying enormous amounts of bitcoin.”

Just as her firm sells art “peer-to-peer”, they sell cryptocurrency. In fact, she suggested that one of her billionaire clients recently said they were interested in “acquiring 25% of all Bitcoin currency available”, adding that she knows of “entities” looking to take the reins of the crypto bull. Per Forbes’ estimates, this would require the investor/group to put $38 billion forward.

Per Mati Greenspan of eToro, such a bout of accumulation, which would likely be the industry’s first, would “push the price up” even though buying the BTC in question would likely be done OTC.

Per Dadiani, she is well on her way to satisfying this demand, fulfilling millions of dollars worth of transactions a day. When you see Twitter bot “Whale Alert” send a tweet about large transactions, you bet it might be the Syndicate’s doing.

Whales Are Stacking Coins

While it is unclear whether the Dadiani Syndicate’s client is serious about accumulating Bitcoin, data is clearly showing that large investors, presumed to be “whales” and institutions, are trying to scoop up BTC as fast as possible.

Pointed out earlier this week by cryptocurrency investor The Rhythm Trader, Grayscale’s Bitcoin Trust (GBTC), which is one of the only publicly tradable cryptocurrency vehicles on the U.S. market, has seen massive inflows over the past few months.

In fact, per data gathered by Rhythm, the Trust accumulated 11,236 coins in April alone. With there being 54,000 BTC being mined each month, Grayscale, barring that its inflows haven’t slowed, is buying up 21% of the new Bitcoin supply. With the recent inflows, Grayscale now has just over $1.9 billion worth of assets under its management, with over 1% of all Bitcoin that will ever be mined in its possession to boot.

Whales are accumulating Bitcoin through traditional means too. Per the latest report from trade publication Diar, “Firm Size” addresses (1,000 to 10,000 BTC) now hold 26% of all BTC, up from 20% in Q3 of 2018. These addresses, which have added 100,000 BTC to their stacks in the first six months of 2019, confirm that “smart money” is accumulating and preparing for the next bull rally.

And most importantly, a recent study conducted by Aite Group revealed that 60% of all cryptocurrency trades executed in 2018 were OTC, up from the 32% registered in 2016. Per The Trade, this, coupled with the fact that exchanges have seen “narrowing spreads and opportunities for simple linear arbitrage vanishing”, show that the market is maturing, presumably through institutional involvement.


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Posted by Nick Chong

Since 2013, Nick has shown interest in Bitcoin and cryptocurrencies. He has since become involved in the industry as a full-time content creator, working for NewsBTC, Bitcoinist, LongHash, among other outlets. Aside from covering the news, Nick is a Creative at Taiwanese technology company HTC.


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