Millionaires selling Bitcoin to the billionaires growth stage?

[dragononcrypto]

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 

[Ferki]

It is very likely that major investors continue to be optimistic about the future development of the BTC price.
Also, I don't quite understand why investors, 10 or 1000 Bitcoin owners, should sell their Bitcoins in bulk.
They are not going to saw off the chair they are sitting in

Not only has Bitcoin made a correction in recent weeks, but traditional markets have also come under pressure. The US stock indices S&P 500, DOW and NASDAQ saw increased selling pressure over the same period as the crypto markets.
For me, it means that the big investors are shifting their assets.
Analysts assume that many large investors take their profits on the comparatively risky crypto and stock markets and switch them into bonds.
Should bond yields rise, this could also have a negative impact on the price of Bitcoin.
But that's unlikely.
I myself remain optimistic

[Angel jara]

The cryptocurrency market is a market where the richest people in the world work. Bitcoin has been the most expensive cryptocurrency market for a few days now. The price of this bitcoin is constantly rising. And the price of this bitcoin is moving from thousands to crores.

[TomPluz]

When you are saying billionaires you must be referring to big-name funds similar to MicroStrategy which is continuing to be buying more and more available Bitcoin when they are seeing a dip in the price of the said coin. Yes, it could be possible that while millionaires are letting go of their BTC for some profit-making action. And not just from millionaires but also coming from guys like us ordinary investors who can sometimes be seeing other opportunities in the market hence they are selling. I am sure that since these billionaires can be here for the long-terms, we can be experiencing some level of drought with Bitcoin supply soon.

[bmw1]

Yes, now those who own billions of rupees are buying Bitcoin and holding it for a long time. And they see that when prices go up they sell their invested bitcoin at that stage. Then they are seeing a lot of profit. So they buy more and more bitcoins and by selling those bitcoins they are becoming more millionaires. So it can be said that bitcoin sales are billionaires at the growth stage of billionaires.

[Arendra]

I totally agree, that someone who wants to really get rich does choose the right path by investing in Bitcoin. Because besides being easy, investing in Bitcoin is also very fast, it can generate huge profits.

[NANCY]

You are right that billionaires are selling bitcoin at the growth stage of billionaires. At present, due to the high price of bitcoin, many people are becoming millionaires by selling bitcoins. The popularity of Bitcoin is only increasing day by day but I think the popularity of this Bitcoin will never decrease.

[CriptoLH]

Apparently, this is true, some billionaires sell bitcoins, others buy them, and both become richer from this. The value of bitcoin is growing every year, ordinary investors take profits on the exchanges, and someone stronger buys these bitcoins from them. It's a game between big whales.

[pealr12]

It is possible because at this stage and with the current btc price surely only the wealthy can sell btc to and the more wealthier people,

[Master107]

Yeah, I also assume he/she bought Bitcoin at the lower price and wants to taste some big profit in just a year of holding.
And maybe millionaires love to buy Altcoins than just Bitcoin.
Another possibility, he has another wallets where more Bitcoin stored, nothing to worry even he sold all Bitcoin in his one wallet.

[Stuart]

This is an interesting topic to read and digest properly.
On a clear look of things in the crypto market, the millionaires who bought to hold looking forward to the profits yeilded and taking out their profits is to stay at the safe side and ordinary investors takes profits at highs and jumps in at lows. But the billionaires are not just putting in their money, but their assets, probably making crypto the place for more profits within a period of time.
While the market is moving on any of he sides, the billionaires makes use of its move as an opportunity to make more profits.
The bigger profits are within the whales, while the ordinary investors just have fun with the market trends.

[UNIVERSE]

It is not about the millionaires and also billions. It is about then bitcoin lovers where we are always buying BTC from others.BTC is now very popular and has become one of the most interesting market caps in the world. Bitcoin can be pushed by everyone in the world with sure.