As Bitcoin has gained more and more support from the mainstream, the cryptocurrency has attracted massive amounts of investment from speculators. So far, this has proven to be a good thing for the Bitcoin ecosystem, but it has also led to a large amount of Bitcoin being held by those who are not actively involved in the ecosystem. The recent drop in Bitcoin holdings by the biggest Bitcoin fund in Canada suggests that speculators may be selling Bitcoin to take profits and prepare for the next bull run.
A Canadian crypto investor called Michael Latulippe has sold his entire stake in his Bitcoin investment fund – which was worth over $1.5 million in the summer of 2017 – to buy more Bitcoin. In doing so, the Canadian investor has transferred his entire available holdings of crypto into Bitcoin Cash. The move appears to be a one-time event, and will probably not have any impact on the Bitcoin price.A Canadian bitcoin fund managed by 3iQ Corp has seen its BTC shares plummet since June.
A closed-end investment product called the Bitcoin Fund (QBTC:CN) had about 24,000 BTC in its vaults in early June. However, as the month progressed, reserves initially fell sharply and in a straight line to less than 16,000 BTC.
Later, another massive withdrawal brought the Bitcoin fund’s BTC shares to about 13,000 BTC, according to data from South Korea-based analytics company CryptoQuant’s blockchain.
Bitcoin has fallen more than 50% since peaking at $65,000 in mid-April. Source: TradingView
Eric Deaton, president and CEO of The Wealth Alliance, said bitcoin has become an overvalued asset after rising from less than $4,000 to a record $65,000 in nearly a year. But given how long cryptocurrencies have been around, their prices will need to be adjusted before rising further.
However, a Bank of America survey of fund managers also found that long bitcoin is among the most popular trades, along with long GSEs and long commodities.
According to Cointelegraph, traders are now closely watching the latest major release dates in the coming days and weeks for their potential impact on the crypto-currency market.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Cointelegraph.com. Every investment and every transaction involves risk. So do your own research before making a decision.
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