Bitcoin’s “Whale Inflow” is Podding
Posted December 16, 2020
Crows come in murders. Apes come in shrewdnesses. Capercaillies come in toks. Colts come in rags.
But what do whales come in?, I asked myself this morning. (Just another day at the office.) I had to look it up.
Whales come in pods.
And, apparently, the bitcoin whales are podding.
Bitcoin Whale Pods
On December 8th, CryptoQuant CEO Ki Young Ju said that the “whale inflows” into exchanges have increased to the ‘bearish zone.’
I don’t expect you to know what that means.
Big picture, “whale inflows” means nothing, really. But if you’re into meaningless buzzwords, they refer to the amount of bitcoin sent to exchanges by whales -- or high net worth investors.
Ki Young Ju said this “whale inflow” meant bitcoin’s price would surely drop. Today, however, we see bitcoin has exploded through its all-time high.
Now, upon writing, sitting at $20,700.
Gentle reminder: Nobody knows anything. But when it comes to bitcoin, the trend is (still) your friend.
Inflows Have Just Begun
“There is going to be a generational allocation to this new asset class. The flows have only just begun."
Those are the words of Eric Peters, CEO of One River Asset Management. One River is a hedge fund specializing in volatility bets. And recently, it emerged as one of the fattest whales in the crypto space -- having quietly raked in more than $600 million in crypto in the past few months.
Peters’ attraction to bitcoin is not unlike our own: central bank meddling and the impending aftermath… namely inflation.
Peters believes many of those trillions in slippery liquidity will undoubtedly find its way into alternative investments and currencies -- bitcoin, as we’ve said all along, being the King Kong of crypto.
"Covid-19,” says Peters, “provided the ultimate catalyst for that transition. This is the most interesting macro trade I’ve seen in my career."
But that’s not all. Peters is doing more than just backing up the truck.
Per Durden at Zero Hedge:
“Echoing what we have said repeatedly in recent months, namely that the next leg higher in bitcoin will come on the back not of continued retail chasing but due to institutional rotation into the cryptocurrency (for another example of this, see "169-Year-Old Mass Mutual Buys $100 Million In Bitcoin"), Eric Peters, CEO of One River Asset Management, told Bloomberg he set up a new company to seize on the growing interest in cryptocurrencies among institutional investors. In addition to its initial purchases, One River Digital Asset Management has commitments that will bring its holdings of Bitcoin and Ether to about $1 billion as of early 2021.”
But if that’s not enough, get this…
In this venture, Peters is joining forces with legendary trader Alan Howard, co-founder of Brevan Howard Asset Management.
Howard is playing a few supporting roles, says Bloomberg’s Erik Schatzker: “In addition to investing in One River Digital’s funds, he’s also buying a stake in the business. A company he controls, Elwood Asset Management, is providing One River Digital with trading services, market analysis and technical support.”
And one more thing.
Yet another legend-in-the-making revealed his cards.
Tiny But Potent
Jonathan Ruffer (the other “50-Cent”), another iconic investor, made the biggest mark of his career last March, when he reeled in a whopper as the markets tanked: $2.6 billion.
This week, his firm disclosed a 2.5% position in bitcoin in one of its funds, calling it “a small but potent insurance policy against the continuing devaluation of the world’s major currencies.”
And that’s precisely how we’ve portrayed bitcoin since 2013.
If you’ve been with us since the beginning, you know it’s been a wild ride. They laughed. They got mad. We were right. (If you joined us on this rollercoaster back then, congrats.)
Today, Bitcoin’s hit a new all-time high.
By the looks of it…
This ride’s about to get wilder.
Managing editor, Laissez Faire Today