Whales and Fishes Keep Crypto in Play: Major Players Make Bold Market Moves

15 Feb, 2022
Whales and Fishes Keep Crypto in Play: Major Players Make Bold Market Moves

The cryptocurrency market started February with a steady beat of optimism, only to be buffeted by winds of a potential war in Ukraine and record-high inflation in the U.S.  While some investors have pulled back, whales, fishes and some savvy investors keep moving forward with a steady dose of digital currency optimism.

Whales and Fishes Keep Buying

Whales, those Bitcoin buyers who hold large accumulations of old coins, never give up.  With their long-term view of Bitcoin and altcoins, any downturn is a buying opportunity.

“The buying sentiment among the richest crypto investors picked up momentum during Bitcoin’s recovery in the past two weeks as BTC rebounded from its 2022 low of $33,000 on Jan. 24 to around $43,500 on Feb. 11,” CoinTelegraph reports.

“Small Bitcoin investors, addresses that hold less than 1 BTC, so-called ‘fishes,’ also joined the accumulation spree during the recent Bitcoin price rebound.”

Bitcoin’s price is down about 40% from its peak in November, and in the past, new traders were the first to sell when prices plummeted.  This change in activity by fishes could signal that retail traders have come to accept and expect the volatility of this emerging asset form.

“From an on-chain perspective, continuing to see illiquid supply relentlessly climb,” writes William Clemente III in his weekly on-chain analysis, Blockware Market Intelligence. “This means that supply is moving to entities that have a low tendency to sell. Think this illustrates a ‘gentrification’ of BTC supply, transferred to entities who understand the longer-term global adoption story that is Bitcoin.”

Bitcoin’s current market capitalization, which currently sits at about $800 billion, is almost $100 billion less than one year ago, but sentiment for the world’s first digital currency remains strong. “Typically, traders overweight Bitcoin during market downturns because of its lower risk profile relative to alternative cryptocurrencies (altcoins),” Coin Desk reports.

WGMI! A new Bitcoin-related ETF launches

The new Valkyrie Bitcoin Miners ETF launched last week on the Nasdaq, with a ticker symbol that resonates with crypto traders worldwide:  WGMI.  It’s a clever nod to the familiar optimistic mantra of the digital currency world: “We’re Gonna Make It.”

WGMI is the first ETF that fully offers investment in the bitcoin mining industry.

"Bitcoin miners are an alternative asset class that are rapidly coming into focus for many investors," said Leah Wald, CEO at Valkyrie, in a press release. "These companies are fully regulated the same as any other publicly traded company, and offer investors yet another avenue to gain indirect exposure to the digital asset space."

WGMI, everybody.

Binance & Forbes.com join forces

Forbes.com, which is all in on the digital currency bandwagon, announced a $200 million “strategic investment” with Binance.

“Forbes is committed to demystifying the complexities and providing helpful information about blockchain technologies and all emerging digital assets,” Mike Federle, CEO of Forbes said. “With Binance’s investment in Forbes, we now have the experience, network and resources of the world’s leading crypto exchange and one of the world’s most successful blockchain innovators. Forbes, already a resource for people interested in the emerging world of digital assets, can become a true leader in the field with their help.”

Last year, Forbes announced its intention to go public in the future.  Focusing on digital currencies is a smart business strategy for the “iconic information brand that convenes and curates the most influential leaders driving change.” Younger generations which are embracing digital currencies are not known for keeping up with traditional mainstream media like Forbes.

Rumors abound about BlackRock entering the crypto market.

Speaking of the media, journalists love a good rumor, especially when they’re vying to be the one to “break” a story.  This week, several news outlets – including Forbes - began reporting that BlackRock, a massive investment organization, is getting ready to enter the crypto market.

“Now, reports have emerged that the world's largest asset manager BlackRock, which looks after $10 trillion in assets for institutional investors, is gearing up to enter the bitcoin and cryptocurrency market,” Forbes said.

Sources told CoinDesk that the company plans to offer “client support trading and then with their own credit facility.

“In other words, clients would be able to borrow from BlackRock by pledging crypto assets as collateral,” CoinDesk said.

No word from BlackRock. But a move by this investment group would be a massive shot in the arm for the crypto industry.

So, while the traditional and crypto markets continue to fluctuate on political and economic news, those in the know have their eye on the digital currency ball. And they’re moving it forward.

Joyce Pavia Hanson