CryptocurrencyNews Analysis

Where Are The Sellers? Crypto Money Flow Is One Way

By December 15, 2017 No Comments
In Google's 2017 Year In Search, bitcoin was 2nd only to Hurricane Irma - like a vortex, the cryptocurrency juggernaut just keeps on sucking up more money.

In Google's 2017 Year In Search, bitcoin was second only to Hurricane Irma - everyone's favorite crypto-vortex just seems to keep on sucking more money into the cryptocurrency ecosystem.

Disclaimer:  The information in this blog represents the opinions of its author and is for educational purposes only.  It is not intended as investment advice.  Cryptocurrency markets are extremely risky so you should only invest money you are willing to lose.

Sellers? .... Helllloooooo.... Anybody?

As Jim Cramer put it succinctly in an interview with CNBC, "Where are the sellers?".  Everyone, from individual investors to institutions, from grandmas to bar-mitzvah boys, is pumping money into the cryptocurrency ecosystem.  There are buyers and there are hodlers, but where are the sellers?

Crypto-Vortex

The results of Google's 2017 Year In Search are in, and bitcoin was second only to hurricane Irma.  Like a crypto-vortex, it just seems to keep on sucking more money into the cryptocurrency ecosystem.

The stats on short sales and money flow tell the story.  Hedge funds have been badly burned by trying to short into a market with such powerful upward momentum - this resulted in a significant decline in bitcoin short sales prior to the introduction of futures trading.

Now THAT's a bank wayyyyyyy ahead of its time - it's own cryptocurrency exchange.   The bank is so afraid of its own fiat currency holdings disappearing down the crypto-rabbit-hole forever that it’s introduced 3 tiers of accounts whereby investors can speculate on cryptocurrencies while keeping their funds with B of A.

Wayyyyyyy ahead of its time - B of A is so afraid of its own fiat currency holdings disappearing down the crypto-rabbit-hole forever that it has filed a patent with the  US Patent and Trade Office for a multi-tiered cryptocurrency exchange platform where investors and businesses can store and trade digital assets instantly.

It Wants To Go Up

Hedge fund manager Michael Novogratz commented on the temperament of the market going into the much anticipated CME futures contract “The market trades like it wants to go up, not down,” Novogratz explained in a recent interview. “We are in a speculative mania, and my sense is we are still fairly early.”

Clinging For Dear Life

With investors pouring billions - now over half a trillion - of market cap into the crypto space, banks are clinging to their fiat currency holdings for dear life lest they disappear down the crypto-rabbit hole - because there’s a good chance those banks will never see them again.

CBOE futures began trading on Dec. 10th and despite all the bubble-boys and deputies of doom, no short-conspiracy arose to tank bitcoin's price. On the contrary, money flow indicators ahead of the CME introducing bitcoin to a much broader audience on Dec. 18th indicate a net inflow of money on the buy-side.

It would be impossible to overstate the power of bitcoin's resilience amidst the cacophonous din of bubble-talk every time it reaches a new high.  CBOE futures began trading on Dec. 10th and despite all the bubble-boys and deputies of doom, no short-conspiracy arose to tank bitcoin's price. On the contrary, money flow indicators ahead of the CME introducing bitcoin to a much broader audience on Dec. 18th indicate a net inflow of money on the buy-side.  chart: coinigy.com, technical analysis: digitalassetuniversity.com

Not The Case

If this were just a speculative bubble, with people trying to sell for more than they paid, then dollars would be going in and coming back out - but that is simply not the case.

Bank of America, the second largest in the US,  seems to grasp this uncomfortable truth only too well.  The US Patent and Trade Office just approved B of A's patent for a multi-tiered cryptocurrency exchange platform for its customers where investors and businesses can store and trade digital assets instantly.

Crypto Market Cap Is Unidirectional

Now THAT's a bank wayyyyyyy ahead of its time - its own cryptocurrency exchange.   The bank is so afraid of its own fiat currency holdings disappearing down the crypto-rabbit-hole forever that it has introduced 3 tiers of accounts whereby investors can speculate on cryptocurrencies while keeping their funds with B of A.

B of A has been an early adopter of blockchain and they’re making a smart play because they see the writing on the wall - crypto market cap is unidirectional - so where do you think all that money is coming from?  Straight out of the banks’ fiat currency holdings.

And guess what? - most of it is probably never coming back - so why not hold onto it with your own crypto-exchange?  Smart.

"They're all selling? Then BUY, BUY, BUY! They're all buying? Then SELL, SELL, SELL!" Bitcoin has doubled in 18 days, but retracements can feel like free-fall - we're here to help. Stay calm and trust the math.

Speculative Mania - It seems like everybody's pumping more & more money into the crypto-verse but nobody wants to take it out.

Not Even For A Lambo

In what is perhaps the most powerful evidence that cryptocurrencies are here to stay and crypto money flow is one way is that large holders of cryptocurrency can't even bear to part with their holdings to spend their money.  An entire industry of crypto-asset backed fiat loans is emerging just to fill this void.

Salt and Coinloan are creating a peer-to-peer blockchain lending platform allowing people to leverage their cryptocurrencies as collateral for fiat loans.  Even to buy a Lambo, people just don't want to let go of their cryptocurrencies.

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