Topic: What if this guy with 96,651 BTC suddenly cashes out? - page 3. (Read 777 times)

There is nothing that we can do about it. That amount of Bitcoins is not much if he dumps it all in one day. The price will go back to normal in a month.

The thing to always keep in mind is logic. Experienced traders do not risk their capitol to "crash the market". They act rationally and logically. With swings of $1000 per day there is absolutely no need to create volatility at great risk. It would be foolish to risk like that in this market. It is very easy money compared to stock, bond or commodity markets. Why introduce new risk?

A serious trader knows this is about percentages not the price of a bitcoin or how much you have. You could be trading $100 or $1,000,000.  You still make the same percentage.

you say if the big whale stops, then the bitcoin price will hit big. I conclude from your writing that bitcoin is a manipulated value

means that large whales can control the value of bitcoin, does your perception justify that bitcoin is a value manipulation?
please give me an answer, is it true that bitcoin value can be manipulated by big whales or not?

Of course, if you bought 10,000 refrigerators, you'd need a house large enough to fit them all.  So they could build some sort of skyscraper mansion.  Oh, and not to mention the beer.  That's a lot of beer.

In a normally operating market, it makes sense to sell your positions into strength.  Flooding the market with a panic sell will absolutely crash the price, be it Bitcoin, bonds, or any other asset for that matter.  Supply goes up, demand remains fixed and actually is slightly falling due to the seller leaving the market, prices go down.  Then momentum trades kick in which causes further selling.

I've traded stocks and futures (not Bitcoin futures) on the long and short side.  I always preferred being long.

Best regards,
Ben

well if that happen the market for btc will go down. but in reality its hard to do that due to the cryptocurrency exchanger they always need gas. and it takes time for others to be approved especially on bigger amounts

If this whale will sell his btc holdings, theirs nothing we can do about it. the price will lift down a little bit but btc still worth a thousands.

If the guy suddenly decided to sell his Bitcoin then there are advantages and disadvantages. Advantage is he'll gain more fiat of course which he can spend for his getaway or other luxuries in life then disadvantage is BTC value will go down. If it dips, then it'll give a chance to other investor to buy BTC more since dips for investors are an advantage to buy BTC during a dip. After that BTC's value will go up again, leaving the seller with less money since he doesn't have BTC anymore that profits in time unless he spend the money wisely.

that's a lot for me. maybe he sells only for investment business. and he will continue the funding for business in the real world.
the price of today's crypto is quite an ideal price for him. and not too greedy expecting to trade it even higher

Well, that just proof if Huobi decided to hit and run, he would be instantly be a billionaire.

That's $900,000,000. He should sell Bitcoins and buy Gold and Silver or real estates. He will be a billionaire after 6 months.

He would cause a nice dip that I would immediately buy into.

He no longer has to sell the coins in the wallet itself.  He can employ the services of a financial institution to sell futures contracts with the wallet as his security on this speculative bet.   Or at least this happens all the time with stocks, companies continue to hold the voting rights on the company stock but engage in the market to speculate on the price itself.

Miners have the vote not the wallet in this case but I think its possible this wallet contents are already engaged in a wider business or distribution but its not exactly apparently just by looking at the transactions.   Considering possible fees its far more efficient to move his interest about by promissory notes, just like happened years ago with other assets.   Obviously gold being the most obvious example of a heavy object rarely moved physically as its completely replaceable in another place and only the note of credit or debit needs to be applied to peoples balance.

Put simply this wallet could just be an exchange type balance, I expect someone already knows the answer to this.  

 Opps I see the guy above knows exactly, I was right     On the FLIP side people do fear large wallets like this can be seized by governments in unilateral moves against BTC, obviously not every country in the world is free or legally justified.

How many times do we have to debunk this stupid article before people will learn to use the search function.

The address belongs to the Huobi exchange (as can be seen here: https://www.walletexplorer.com/wallet/e8fb61953c163500?from_address=3Cbq7aT1tY), and it is simply one of their storage wallets.

Its not necessarily a single person. It could be a large financial institution like a bank. It could be a large corporation. Apple is sitting on $90 billion dollars in surplus cash, last I checked. It is possible they invested $400 million of their disposable cash on bitcoin secretly as a hedge against potential devaluation of the US dollar. It is also possible that goldman sachs (which has sounded strangely positive on bitcoin lately) or another bank, hedge fund or another investment firm is buying up a "small" $400 mil stake in bitcoin the way an investor might buy gold in a high deficit/debt economy.

I don't know if we'll ever learn the true identity of the mysterious person or group who bought 96,651 BTC. But it is an interesting story for sure. The motive and story behind it will undoubtedly be very interesting as well if its ever publicized.

That was not the point of my question.
The hypothetical question was intended as a way for me (who is trading stuff for the very first time ever in my life) to learn about how the market would actually react, and what drives a given % increase/decrease in value, etc.

That's not interesting as a story. If you want some sort of a hyped article, it's much cooler if you say that it's an anonymous trader or a hedgefund having bought that many coins. As stupid as most of the people here are, they take everything for granted just by reading a title. It just shows how low the average IQ here is.

In the same way, you could ask what would happen if;

Satoshi with his assumed 1,000,000BTC cashes out.
Mark Karpeles with his assumed 300,000BTC cashes out.
Roger Ver with his assumed 300,000BTC cashes out.
Jihan Wu with his assumed 200,000BTC cashes out.

Depending on the exchange, especially in case of Satoshi, it would cause a flash crash tanking the price down to sub $10 levels.

it would definitely dip the market by about 20% at least into the red

Isn't it far more likely that this "guy's wallet" is actually the wallet of a business like Overstock? Look at how small the deposits are.  it's an exchange or casino or something.

Thanks! This answered my question!

You could guess that there is probably something out of ordinary about such case. First off, is some one who never watched his balance, or if he did, he would have an heart attack and probably next day be grateful and go to church or something.