The top trader on the Bitfinex exchange shared his opinions on the current situation on the cryptovalut market. Who is Joe007 (as this is the nickname used by the anonymous trader) and what does he think about the near future of Bitcoin?
The person Joe007
Not much can be said about the personality of an anonymous whale. It is certainly an important figure in the crypt world in terms of opinion-forming. His statements in social media (mainly on tweeters) are often quoted in trade media and influence the mood of investors.
Joe007 himself writes about himself on Twitter in this way:
“I make waves. I don’t respond to anyone but myself. He rolls cryptic twitter, but are you sure? And yes, I call things by their first name. I don’t like it. Too bad.”
One could think of him as a typical cyberpunk anarchist with a light-hearted approach to life, which is supposed to be followed by some deeper message. The profile description tells us little and is quite ambiguous, which creates an even greater aura of mystery connected with his person.
The investors’ attitude towards the opinion of an anonymous whale
For some time now, there has been a widespread belief that the digital currency market is definitely in a boom phase. When the cryptic fortune-tellers outranked each other in making worse and worse predictions a year ago, it seemed that this downfall would never end.
A year has passed, and we (together with the same fortune-tellers) are firmly convinced that the drama is behind us, and now it will only be “to the moon”. The investors connected with the market have been crypticking until they are changing the long-term trend. In all this digital gold rush, the coming halving on is a ballistic missile that will shoot the price of Bitcoin on the Earth-Moon line. We see this, among other things, after the last survey we organized, which shows that over 70% of cryptic investors think it’s a good time to buy altcoins.
However, the best trader on Bitfinex is cooling down. In his opinion, the boom hasn’t started yet, and the price of the cryptic assets is being pushed upwards by speculators, driven by the increasing noise around the crypts.
How about it, Joe?
The main problem Joe007 quoted is the lack of capital inflows in fiduciary currencies. According to the investor, the most important factor determining long-term growth is the inflow of new capital from outside the cryptocurrencies space. So far no data has been recorded that would confirm the existence of such a trend. Therefore, there is a fear that when the enthusiasm runs out and the capital does not flow, Bitcoin will face a black scenario.
Joe007 mentions in his recent tweets that BTC is not a magic black box that does what it always does. Trends must be based on the strong supply and demand law and the inflow of capital in FIATs, the investor wrote in his tweet of 2 February.
Another argument that the Bitfinex trader used in his opinion is the fact that Tether’s capitalisation has actually stalled for a long time. It is a good indicator of how much cash is entering the market. According to him, it is another symptom that indicates the weakness of the upward trend.
Joe007 summed up his activity by saying that until the cryptic market starts to receive capital in the form of FIATs, he will not believe in a real change in the long-term trend.
So according to Joe007 there will be no boom?
Not exactly. Joe007 warns investors not to imply a growing noise in the crypto area, but to look at the matter from a longer perspective.
A week ago, a Twitter user asked the trader about the structure of his position, and he explained to him that his main order is still asleep and that he has no intention of doing anything with him. He added that the leader board, which the buyer referred to, does not reflect the value of his position portfolio, because he never trades all his capital.
Taking these aspects into account, some conclusions can be drawn. The top trader, on the one hand, warns investors against getting into hurricane optimism, on the other hand, maintains that in the long run growths will finally come, keeping his main position unchanged.
Why isn’t outside capital coming in?
Last year gave us a lot of excitement. At first, a lot of the negative ones that everyone forgot about by mid-year. However, it is hard to disagree with the opinion that 2019 was really good in fundamental terms. The market has cleared itself somewhat of weak projects and scams, but it must be remembered that the moulding process is still ongoing and will probably continue for a long time.
During this time, the industry has moved forward and users have finally received many tools and solutions that they have been waiting for a long time. Today, investing in cryptocurrencies is not only based on stock exchanges. Investors have been provided with instruments that allow them to speculate on the price of BTC, without any contact with Bitcoin.
One should not forget about the breeders, who, no matter how hard they stick to their digital coins. Over the past year, 12.6 million BTCs have not moved from place, even though they raided from $3,500 to $13,500, where even a 300% increase has not prompted some holders of digital gold to make profits. Common sense tells us to remember Satoshi Nakamoto’s million BTCs, and the estimated 3.5 million coins lost. This does not change the fact, however, that the lion’s share of supply is constantly stagnating, and investors are thinking about Bitcoin in the long run.
Going further, it can be assumed that the sluggishness of institutional investors is largely due to the lack of proper regulation of the crypto zone. Large institutions, even if they want to enter the crypto zone, have serious doubts about this because of the unclear legal situation of the crypto zone. To this day, it is still unclear how to treat them, whether they are money, financial assets or another creation. Until governments give a clear answer to these questions, it will be difficult to expect institutional investors to appear in the crypto space.
So will it be this boom or not?
At the beginning of the year, the WhaleAlert profile informed the crypto community about larger movements between the alleged whale’s portfolios for a long time. At that time, funds totalling about 65 million from unknown portfolios were directed mainly to the Bitstamp ($36.5 million) and Binance ($28.7 million) exchanges.
On 2 January (the day of publication of the WhaleAlert listing), BTC’s price was USD 7200, while today BTC boldly raises its head to the “ceiling”, which is USD 10,000 per coin. Thus achieving a profit of almost 30% in a month. Market enthusiasts claim that it is only a matter of time before this border is broken again and the only right direction is the Moon.
In recent days, the Guppy index, which is a collection of different moving averages, has changed colour from red to green. This event fills investors with optimism because in the past it meant a change of trend. It is interesting to note that in the previous year the same indicator also changed to green, and this happened immediately before the sudden bull run.
Another indicator suggesting that an increase in the BTC price is most welcome is Puell Multiple. This indicator gives information about the freshly extracted BTC and now its value indicates that the price of digital gold is too low. Since the value of the new unit’s output is already underestimated, May’s halving will make it even less profitable (assuming it would remain at the current level).
Bitcoin himself behaves as if he rolled up his sleeves and got to work. Joe007 warned us that we should keep a cool watch on the market and not get into a hurricane. Indicators give us objective statistics, and users keep an eye on themselves to keep a sober mind.
As always in such situations, we wish well-considered investment decisions!