Crypto Roundup: Bitcoin Whales, EOS Launch and Mike Novogratz’s Bullish Forecast
All is quiet in crypto land, as declining volatility and thin trading volumes keep price action to a minimum. However, in terms of news and speculation, the cryptocurrency market has plenty to offer.
Our latest crypto roundup features some interesting new data on bitcoin whales, the prospective launch of EOS and a bold proclamation from Mike Novogratz.
Bitcoin Whales Control the Market
Bitcoin whales are said to have an enormous impact on the broader market. Now, a new study has quantified the extent of their control.
A cluster of 1,600 investors collectively hoard $37.5 billion of available bitcoin, according to Chainanalysis, a blockchain research company. The data, which was seen by the Financial Times, were taken from April of this year.
Each of the 1,600 wallets evaluated by Chainanalysis contained 1,000 units or more of the digital currency. Combined, the wallets hold around $5 million bitcoin.
The wealth is even more concentrated when we zoom in on the top-100 wallets, which contained between 10,000 and 100,000 units of BTC. At today’s prices, that puts their value at $75 million to $750 million.
Bitcoin whales have played an important role in the market’s pullback from record highs. Some have speculated that whales loaded up on bitcoin prior to the launch of futures contracts in December and have been unwinding those positions ever since. If their assessment is accurate, the short-sellers have burned through a large portion of their supplies since each subsequent downtrend has been shallower than the one before it.
Investors are keeping a close watch of the so-called ‘Tokyo Whale,’ who has been quietly unloading tens of thousands of bitcoin on behalf of Mt. Gox, the now liquidated crypto exchange. Since March, the Mt. Gox trustee has sold roughly 40,000 units of BTC.
EOS Launch Day
After multiple delays, the launch of the highly anticipated EOS mainnet is set to occur on Saturday, according to the results of the recently held live-stream vote.
Based on the vote, a majority of Block Producer candidates wanted to go ahead with the launch, which has apparently already occurred.
The launch was announced by EOS Go, a Twitter handle associated with the blockchain’s sprawling community.
“EOS LAUNCH IS A GO! The blockchain will launch at 1300 UTC Saturday. GO EOS!!”
The launch was also corroborated by EOScountdown.com, which provided a new update about three hours ago.
It has been a confusing nine days for the EOS community, with token holders left in the dark over the pace and timing of the anticipated mainnet. The cryptocurrency traded only slightly higher on Saturday, a session that has seen very little movement in price.
Novogratz: Crypto to Be a $20 Trillion Market
Billionaire investor and former Goldman Sachs trader Mike Novogratz says cryptocurrency will become a $20 trillion market.
Speaking to Erik Schatzker at the Bloomberg Invest Summit in New York, Novogratz said the crypto’s January run-up was not a bubble but the continuation of an ever-expanding bull market. In reference to bitcoin, Novogratz said bitcoin’s record gains mirrored the 1996 technology market where prices continued to rise for another three years before the bubble burst.
Novogratz says cryptocurrency is “a global revolution” whereas the dot-com boom “was only a U.S. thing” initially.
The cryptocurrency market peaked above $840 billion in January; to get to $20 trillion, a 20-fold increase would be required.
Bart Smith, the so-called “Wall Street Crypto King,” recently expressed optimism over the market’s future. In an interview with CNBC, Smith said cryptocurrency prices are set to rise as institutional investors enter the market.
Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
Featured image courtesy of Shutterstock.