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Bitcoin Whales Initiated Bear Move By Dumping Their Coins Onto GBTC Speculators — Peter Schiff

Bitcoin Whales Initiated Bear Move By Dumping Their Coins Onto GBTC Speculators — Peter Schiff

Bearish price movement despite large-volume Bitcoin post-halving purchases by Grayscale Bitcoin Trust points to the involvement of whales, states a renowned investor, and Bitcoin critic Peter Schiff.





He puts forward the hypothesis that downward price movement is justified by whales putting their funds into the investment firm while selling the actual underlying crypto, which pushes the price downward. In his tweet, he highlights how the principle works:






Despite Grayscale Investment Trust buying more than 100% of all the Bitcoin "mined" since the halving, the price of #Bitcoin fell. This likely indicates Bitcoin whales unloading their coins onto GBTC speculators. Distribution from strong to weak hands is very bearish for price.

— Peter Schiff (@PeterSchiff) June 26, 2020





The Bitcoin purchases by Grayscale Investment Trust is further passed on to buyers who are willing to keep a share of their portfolio in BTC. By May 2020, the company bought all mined bitcoin on the market, which was acquired in the aftermath of the Bitcoin halving.





Now, investors have broader opportunities for diversifying their portfolios with digital currency, and this comes as good news for BTC. However, being highly volatile from nature, Bitcoin may bring more risks than benefits for the unprepared investor.





The role of whales in Bitcoin price setting





While whales have been known for exercising influence over the price of a digital asset, this time again they are considered as the main acting parties behind Bitcoin’s price slowdown. It happened a number of times in the past, especially during the most extreme and sharp price spikes and downfalls, whales continued trend-setting for the market.





One of the recent loud activity was the mass withdrawal of bitcoins on centralized exchanges by whales. That could potentially be the main reason behind the shift towards investment firms like Grayscale Bitcoin Trust. As its stock gradually started climbing up, this further approves the increased interest from the investment community, including whales.





While Bitcoin prospects may look more positive in the future, the current bearish market leaves a promise of turning to the bullish territory in July.


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