Bearwhale Sighting Off The Starboard Bow

Dear Rundown Reader,

Be warned.

We’re getting multiple reports of bearwhale sightings this week.

Bearwhale is a term first coined in 2014, when a Bitcoin owner tried to sell 30,000 in bitcoin for total value of $9 million. Bitcoin going for around $300 at the time.

The trader’s exchange nickname was BearWhale. On that day a legend was born.

Today, bearwhale describes anyone with a ton of crypto trying to sell all at once.

Which in turn moves the price significantly.

Beware the bearwhale. It could sink your ship.

Your Rundown for Friday, April 20, 2018…

Bitcoin Owners Are Getting Anxious

Bloomberg’s headline from the other day reads:

“Bitcoin Whale Sightings Are Leaving Cryptocurrency Traders Jumpy”

Bitcoin owners should be.

Earlier this week, $100 million in bitcoin was sold over the course of two days by two anonymous digital accounts.

The first transaction occurred Tuesday, when one account sold 6,500 in bitcoin at an average sale price of $8,146. A total transaction value of over $50 million.

The second transaction followed on Wednesday. Another anonymous account sold 6,600 in bitcoin at an average price of $8,026, according to Market Watch.

When whales make a splash the ripples are felt everywhere.

Bitcoin’s price fell by $200 dollars while these two whales played their games.

Tom Lee, head of research at Fundstrat Global Advisors, speaking to Bloomberg notes: “It’s the state of it (the market) now because there isn’t a ton of liquidity and there is regulatory uncertainty and general nervousness.”

As a result of the chop, many experts like Lee are uncertain of the market’s future.

“I think it feels off right now because, you know, we’ve been on a down trend… even though the volatility hasn’t changed much, it’s hard to tell if Bitcoin is trying to stage a recovery or if it’s continuing its down trend,” Lee notes to Bloomberg.

It’s also hard to decipher why a bearwhale, at anytime, decides to sell en masse.

One could be cutting losses. Another might believe more in an altcoin and want to switch their asset holdings. Another could be taking gains.

According to a Bloomberg report from last December, 1,000 whales own roughly 40% of the available bitcoin.

Bearwhales are our crypto-overlords whether we like it or not.

And the fact that we don’t know who they are means we can’t know their motives. Or predict where things are heading with any real certainty.

Non-anonymous “BitcoinCorporate” anyone?

Something like that may be the only way to bring equity to the bitcoin market.

Now, turning to the markets this morning…

Market Rundown for Fri., April 20

S&P 500 futures are up 1.75 at 2,694.

Oil’s down $0.46 to $67.83.

Gold’s down $4.40 to $1,344.

Bitcoin goes for $8,526 this morning, according to CoinDesk.

Bitcoin has bounced back from bearwhale action this week, managing to stay above $8,000. We may be able to say $8k is the new support level.

Trade accordingly.

We’ll talk again on Monday.

For the Rundown,

Aaron Gentzler

Aaron Gentzler

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Aaron Gentzler

Aaron Gentzler is the publisher of Seven Figure Publishing. He is also the editor of The Rundown and has been with Agora Financial / Seven Figure Publishing since 2005. He's been covering technology and markets for over a decade.

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