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Bitcoin Forum / Millionaires selling Bitcoin to the billionaires growth stage?
« on: March 06, 2021, 10:06:21 AM »
Yesterday I was looking at on-chain data from LookIntoBitcoin, these two charts stood out to me looking quite relevant at the moment. While most of the on-chain at the moment shows evidence of continued institutional buying, to me the following represents how this has been playing out. In fact, it looks like the millionaires are taking profits while the billionaires buy from them. Last time we saw drops this steep was in 2013 and 2015/2016, as well as to some degree 2019 
I make this rough assumption from the following graphs based on 10 BTC wallets and 1,000 BTC wallets. Of course, it's more than possible than an individual or institutional has 1K BTC divided into multiple wallets, but this still repersents a sample for statistical comparison to the re-distribution theory. This is based on individuals with $0.4m+ in Bitcoin would likely be millionaires, those with $0.4b in Bitcoin would likely be billionaires. Consider it for a moment.
To me this is a very exciting development, I have a theory it's the hedge funds who were buying back into the market in 2018-2020 now taking profits, while institutions and even higher-net worth individuals begin to buy their small percentages from them. The investor reasoning for this would be the recent recovery of more speculative projects (mid and small caps), with the dominance of other coins now only 1% away from ATH after doubling since end of 2020. Note that the decline in wallets holding 10 BTC or more began in mid December, at the same time that altcoins begun gaining market dominance.
Part of my theory for this, is that while institutions and others now feel comfortable buying a sub $50K Bitcoin (with the likelihood of it doubling in value by the end of the year), I believe hedge funds (as well as miners) are taking their profits while also increasing their risk in the altcoin market, rather than returning to fiat currencies. After all these hedge funds that have been around for a few years are very smart, they don't sell the start of the rallies, only taking out initial investments usually.
Also to note overall is while the billionaires have been loading up on Bitcoin, in the past this happened as recently as 2019, as well as heavily in 2015-2016. The latter would of been at a time when the hedge funds (millionaires) would be buying from the 401K investors I imagine who dumped in late 2015 and 2016 (worst time ever!).
TD:DR:
Note the >10 BTC wallets have a habit of selling their stashes at the wrong time, to richer individuals with >1000 BTC
I make this rough assumption from the following graphs based on 10 BTC wallets and 1,000 BTC wallets. Of course, it's more than possible than an individual or institutional has 1K BTC divided into multiple wallets, but this still repersents a sample for statistical comparison to the re-distribution theory. This is based on individuals with $0.4m+ in Bitcoin would likely be millionaires, those with $0.4b in Bitcoin would likely be billionaires. Consider it for a moment.
To me this is a very exciting development, I have a theory it's the hedge funds who were buying back into the market in 2018-2020 now taking profits, while institutions and even higher-net worth individuals begin to buy their small percentages from them. The investor reasoning for this would be the recent recovery of more speculative projects (mid and small caps), with the dominance of other coins now only 1% away from ATH after doubling since end of 2020. Note that the decline in wallets holding 10 BTC or more began in mid December, at the same time that altcoins begun gaining market dominance.
Part of my theory for this, is that while institutions and others now feel comfortable buying a sub $50K Bitcoin (with the likelihood of it doubling in value by the end of the year), I believe hedge funds (as well as miners) are taking their profits while also increasing their risk in the altcoin market, rather than returning to fiat currencies. After all these hedge funds that have been around for a few years are very smart, they don't sell the start of the rallies, only taking out initial investments usually.
Also to note overall is while the billionaires have been loading up on Bitcoin, in the past this happened as recently as 2019, as well as heavily in 2015-2016. The latter would of been at a time when the hedge funds (millionaires) would be buying from the 401K investors I imagine who dumped in late 2015 and 2016 (worst time ever!).
TD:DR:
Note the >10 BTC wallets have a habit of selling their stashes at the wrong time, to richer individuals with >1000 BTC
