Mysterious Bitcoin Dip-Buyer Identified

Tyler Durden's picture

Amid the cataclymsic collapse of Bitcoin late on Friday night, the crypto currency suddenly saw a large buyer step in as prices plummeted below $6000. We now have an idea who that buyer of last resort was...

As a result of a giant publicity effort from its proponents, BCH saw mass investment as it heads towards a potentially contentious hard fork set for just after 7 p.m. GMT today. The failure of SegWit2x, coupled with endorsement from the soon-to-be-defunct Bitcoin Classic team meant BCH became the major ‘competitor’ to Bitcoin over the weekend.

But, as Reuters reports, former Fortress macro hedge fund manager Mike Novogratz - who we most recently profiled here - told Reuters Global 2018 Investment Outlook Summit in New York that he bought $15 to $20 million worth of Bitcoin over the weekend in that recent pullback.

The billionaire says his crypto fund 'Galaxy Investment Partners' owns Bitcoin, Ethereum, and many other companies, and coins.

“The institutionalization of this space is coming. It’s coming pretty quick,” he said.

Novogratz said he expects major financial firms will soon start to offer bitcoin or similar products as an investment option, one that could be easily purchased over the phone.

“When it’s that easy, the price of bitcoin or ethereum is going to go much higher. And that is a lot closer than people think,”

His biggest regret this year has been not buying more cryptocurrencies when prices fell, because he knew that they would keep going up. He sees bitcoin, for instance, hitting $10,000 by March.

Novogratz previously said that, while bitcoin is a bubble, the mania is justified, because it is a technological advancement that promises to fundamentally alter our lives.

"I can hear the herd coming" Novogratz said.

And bubble or not, Novogratz concluded eloquently on the extreme nature of cryptocurrencies' potential...

“Remember, bubbles happen around things that fundamentally change the way we live,” he said.

 

“The railroad bubble. Railroads really fundamentally changed the way we lived. The internet bubble changed the way we live. When I look forward five, 10 years, the possibilities really get your animal spirits going.”

Bitcoin is set to become "the biggest bubble of our time," he added, and could reach $10,000 very soon due to fast-building interest.

But, we also note that Bank of Japan Governor Kuroda made some fascinating comments earlier that appeared to suggest selling yen and buying bitcoin:

Haruhiko Kuroda says he doesn’t “see any serious problem arriving from cryptocurrencies at the moment.”

 

“We are carefully watching the development,” he says at an event of the Schweizerisches Institut für Auslandforschung on Monday in Zurich.

 

Additionally, Bloomberg reported that Kurodas warned "Japan's high debt-to-GDP ratio is not sustainable."

And as the chart below shows, the buying binge overnight really struck as Japan opened...

This move comes on the heels of American venture capital investor Tim Draper's comments (founder of the Silicon Valley VC firm Draper Fisher Jurvetson) that fiat currencies will no longer be in use in five year's time as they are to be replaced by cryptocurrencies.

At the WebSummit conference in Lisbon, Portugal, he told Forbes the fiat system will eventually disappear as people look toward coins like bitcoin or ethereum. He says its because fiat currencies are bound by country borders.

 

“In five years, if you try to use fiat currency they will laugh at you. Bitcoin and other cryptocurrencies will be so relevant … there will be no reason to have the fiat currencies,” he said.

 

An unabashed promoter of cryptocurrencies, Draper said he fell in love with bitcoin not long after it was introduced in 2009. He bought 30,000 coins in 2014 (at about $600 each); they are now valued at over $214 million.

 

“This is the greatest technology since the internet,’’ said the investor. “This is a sociological transformation, it’s a movement.’’

 

He also said that bitcoin will divide the financial services industry, at least initially.

 

“There will be a few who embrace it and jump out front and say, ‘This is important’ and then there are going to be those who jump back and say, ‘I’m going to cling to the past, and I’m going to hold onto everything I’ve got.’ And you know who wins then,” Draper said. “It’s always progress, it’s always technology.’’

 

Talking at the conference, he said investors should thoroughly study who’s running the ICOs and whether their business plans seem legitimate.

 

Draper has rejected the possibility of the cryptocurrency market imploding like the dotcom boom in the late ‘90s, saying “people are always going to say there’s a problem, and that usually means there’s a lot more upside.”

Finally we leave you with Dennis Gartman's comments tonight on bitcoin:

"this is a market for criminals and millennials."

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Mustahattu's picture

I'll look for a dude holding a salt shaker ;)

Mustahattu's picture

Hey man you don't need to start calling someone a conman just because he hosts an event and has his own views. Prove it that he is a "confirmed" conman, whatever that means. Is it confirmed by you? And who the fuck are you? Are you the authority on something? Have you ever been to anarchapulco or just blowing shit out of your ass?

HRH Feant2's picture

I am sick of your solipsism and stupid claims.

Declarative statements are not arguments. You have been found out to be a fraud. Now go crawl back into your hole and cry.

Claiming to use logical argument to prove your point when you fail to abide by the normal standards of logic and argument is nothing les than fraudulent. But you knew that. Like a good little sophist you thought you could cow the little people with your mastery of logic. What you didn't expect was that some of the little people have mastered logic. Probably many years in advance of yourself.

You want to set the rules for argument but then do not follow them yourself.

Fuck off asshat. Oh, and that was a direct ad hominem attack.

tmosley's picture

>You have been found out to be a fraud

Expound.

>What you didn't expect was that some of the little people have mastered logic

But you have yet to present a single argument.

>Oh, and that was a direct ad hominem attack.

No it wasn't.

Feant's picture

You are a the fraud. Did you think I would be gone?

Go play in another sandbox. You are a phony and you have been caught.

tmosley's picture

What are you talking about? State your case.

Feant's picture

I don't have to state anything.

But I did. You are a fake and a fraud. Not only will you bring down BCH but you may have just ruined one of the freest free speech forums in the world.

I hope anything you gain makes you miserable. May you suffer and die a horrible death. Nigger.

Could I make it any clearer?

tmosley's picture

>Not only will you bring down BCH but you may have just ruined one of the freest free speech forums in the world.

Hahaha, the GREAT AND POWERFUL TMOSLEY!!! Cower before my name!!!

>May you suffer and die a horrible death.

You seem upset.

>Could I make it any clearer?

Your position could be much clearer, yes, but no, I don't think you are capable of making it so.

rccalhoun's picture

tmosley----you sure are insecure.  if you are so sure of bitcoin, bitcash, block chain etc....why do you post here seeking feedback?  your mind is made up, why do you seek feedback?  or is attention that you seek?

tmosley's picture

I am always seeking to be proven wrong. That way I can become less wrong. http://lesswrong.com/

Gotta use arguments to prove me wrong though. Insults, shaming, etc, don't work on me.

Feant's picture

Pride goeth before the fall.

With that single post you ruined your credibility, any that was left.

Congratulations on a level of idiocy I have not witnessed here before.

Not exactly the award you want to win. Unless you are a moron or a psychopath. You? Oh niggers like you are clearly psychopathic. Obvious from 100 yards.

tr123's picture

You guys are ridiculous, I hardly know the guy but I appreciate that he's sharing observations about Bitcoin and other cyrptocurrencies that I currently don't have the expertise to fully understand. I get the gist of it and have good intuition, but can't be bothered for details and even if tmosley is wrong he's got the details so thanks.

Now you people, Feant and those like him, contribute absolutely nothing to the discussion. Zero. Nada. Why bother? You apparently have the time to respond 5 times to the same dude but never once offer even the slightest idea of a case against the subject at hand when grilled for it. 

My opinion for what it's worth is that none of these alt currencies will explode until they're listed on Coinbase and other major exchanges. Still waiting for XRP

Feant's picture

Awwww a little snowflake just landed in the convo.

My point of view has been consistent. I haven't wavered. I have said I thought BTC was highly speculative, I doubled my I trial investment and cashed out two weeks ago.

I have been trading on GDAX since April. Opened an account and started. Not a big deal. Not that complicated.

I have spoken out about ICOs, especially Veritaisum. It is Vaporware.

As for Mosley he has adopted this "it isn't an argument" bullshit when he refuses to discuss his point of view in a clear manner. Posting links to basic BTC tutorials tells me that this guy is nothing but a paid hack / schill.

Good for him for being paid to lie to people.

I don't lie. My point remains consistent. If this guy wants to deal with China, fine. Not my thing.

There are many ways to ruin a brand. This guy is working overtime to ruin BTC. Why? Why would want to ruin what you claim to like?

Not logical.

tmosley's picture

Did you feel like you weren't ranting when you typed all that out?

Also, I had no idea about your position. You never mention it anywhere else in this thread. All you do is attack me, and you only attack me because I have a positive opinion of BCH.

You look like a crazy person.

Feant's picture

A fucking gaslighter. Not surprised. When you don't have an argument what do you do? Throw the person into the fire.

I supported you on many threads, previously. Until yesterday.

I have said on other BTC thread that I cashed out. I was pretty clear about that (HRH Feant2).

But go ahead, keep shucking and jiving. Your think your good at it. Niggers always think they are the best con artists. Until they get caught.

mortiis's picture

tmosley was mocked for having BTC in the first place... now mocked for SWITCHING BTC for BTH? This crew can't make up their minds whether they love or hate BTC.

> I doubled my I trial investment and cashed out two weeks ago.

How long did it take you to double and get out? I'm guessing you never even learned any of the technology or understand why there are those that plan to hodl (in whatever form) and aren't interested in "cashing out" to the USD.

Feant's picture

I opened my GDAX account in April. Do the math.

As for understanding the technology, did you read any of my previous comments? ANY?

I knew about BTC back in 2009 from the libertarian radio show FreeTalkLive.

Keep up with the convo, idiot.

tmosley's picture

All your comments in this thread are you ranting and raving like a lunatic.

As I said, you look like a crazy person.

tmosley's picture

>With that single post you ruined your credibility

>referring to a post of lighthearted jest

I came here to laugh at you.

maxblockm's picture

It's like an alternate personality of MDB

tmosley's picture

Holy shit, was MDB right the whole time and I was in cognitive dissonance along with the rest of the peanut gallery?

Horrifying if true.

TwelveOhOne's picture

That was never five minutes just now!

skbull44's picture

Sorry, but I'm not allowed to argue anymore. Good day.

null's picture

Yea, they are too arguments.

And you need to work on your ad hominem ... potty mouth plus a version of “you” just doesn’t cut it. But to be fair, it is logically impossible for you to ad hominem anyone who is anonymous, you have no context unless they Give you one.

Bumpo's picture

Bcash has been all over the map this weekend. It "was" more profitable to mine BCH, then the difficulty spiked, thus the upcoming and just today implmented BCH hardfork to change the difficulty alogrhythm. I made MORE bitcoin today mining than usual, as difficulty decreased with the temporary spike in hashing power to the Btrash side. Mining is about even between Bcash and Bitcoin when considering value, with BCH at .20 to the Bitcoin, and taking 20% of the hashing power. There may be a huge dump of Bitcoin Cash when the exchanges open it up for trading those free tokens from being a Bitcoin holder, thus being available to sell on the market to buy more Bitcoin. Miners are going to mine what is most profitable. Everything else is bullshit.

tmosley's picture

>Miners are going to mine what is most profitable. Everything else is bullshit.

That is it EXACTLY.

Bumpo's picture

Bcash was more profitable because of all the blocks the miners were allowed to mine in the first couple of days. There was actually more hashing power on the Bcash side (vs BCC) for a brief time, but once the difficulty adustment came in, Miners went back to Bitcoin. By the way, something very suspicious about the btrash pump is that almost all the buying volume came from South Korea. 

tmosley's picture

You should look into the BCH hardfork update that just occurred.

It is designed to tempt miners away from BTC. If you have a lot of BTC, but no BCH, you had better know damn well that it won't work. The shift of hashing power and resulting network clog SHOULD be a wakeup call.

>all the buying volume came from South Korea

I heard that too. Don't know what that was all about. Seems like a lot of actual volume for it to have been fake, though.

Panafrican Funktron Robot's picture

I like to track What To Mine for data points on mining; seeing where BCH is only 87% as profitable as BTC as of 8:30 AM CST this morning.  Fluid situation obviously, but the current difficulty for BCH has spiked about 60% in the last 24 hrs.  Implementation delay perhaps?  BTC hashrate jumped all the way back to 9400 PH after dropping to 5400 last couple of days per blockchain.info.  Ie., data was supporting your argument yesterday, not so much today.

Golden Phoenix's picture

Did you read Bumpo's previous post? Active miner using realtime profitability.

Feant's picture

But mining in China, a communist country, is only profitable for one group.

The communists.

And thus you are shown to be a communist hiding behind the red curtain. I wouldn't want to the the person in the US playing that game. But go ahead. I dare you. The think about people like you is you think you are the smartest person in the room. Until they put handcuffs on your dumbass and cart you off to prison.

I hate one thing more than anything else: communists and communism.

tmosley's picture

Nah, you hate me more than anything. 

Why? Because I am persuasive and you have a deep seated belief that you don't want to be persuaded out of.

Feant's picture

OH but you have persuaded me of one thing: that you are a conman and support BCH.

I never thought BCH was a thing. I still don't. And with creeps like you lurking around BTC may be doomed to failure.

I am your target audience and you have made me realize I will never advise anyone to buy BTC. Ever again.

tmosley's picture

I am a conman because I disagree with you on one thing. You have made a permanent decision based on a fit of irrational anger.

Think about that for five minutes. Literally five minutes. Turn off the rage music. Maybe shut your eyes and lean back, and think long and hard about EXACTLY what it was that I said that has made you behave in this manner.

11b40's picture

You buy things in stores?  You are supporting Chinese Communists.

Pladizow's picture

At the very least he's ignorant. Jeff Berwick is a confirmed conman. Google Jeff Berwick scam. Also Ver sponsors Jeff's Anarcacupulco event, which is know a B-Cash shilling event.

HRH Feant2's picture

Succinct and to the point. Welcome to fight club!

JRobby's picture

Why lenz? Explain why.

Herd Redirection Committee's picture

All these things being said about BITCOIN is true for CRYTPOCURRENCIES.  But the two are not as interchangeable as they appear.  And perhaps the railroads are a good reference.   Don't forget about all those bankruptcies!  Also, the interstate was developed, AND the airplane.

There will be winners and losers, but the ultimate winner may not even be tradeable yet.  I have heard good things about Hashgraph, for example, being more scaleable and fair than BTC.  It uses 'proof of stake' vs 'proof of work'. 

https://www.thestreet.com/story/14385913/1/is-hashgraph-technology-just-...

Apparently VISA, JPM and Apple already have a stake in Hashgraph. 

This is probably how the elites plan to allow their fiats to destruct.  Gold standard would be too painful for them, so they have come up with cryptocurrencies as a sort of '3rd way'. 

 

Hexagon Sun's picture

The ultimate winner is only partially tradeable — ICO coins are locked in the blockchain until Hackerone finishes security testing over the next several weeks — and is the one called Electroneum: the easy-to-use, mobile cryptocurrency designed for mass adoption.

Hexagon Sun's picture

The ultimate winner is only partially tradeable — ICO coins are locked in the blockchain until Hackerone finishes security testing over the next several weeks — and is the one called Electroneum: the easy-to-use, mobile cryptocurrency designed for mass adoption.

JRobby's picture

"I repeat myself when under stress"

Buckaroo Banzai's picture

Proof-of-work has definite shortcomings, but Proof-of-stake has its own problems that haven't been worked out yet. And, Proof-of-work technology has at least proven that it can scale to the point where it supports a substantial market cap. Proof-of-stake is still in its infancy.

Also, the link you furnished was a low-information puff piece. I will have to do my own research on Hashgraph, but reading between the lines, it looks like it runs on a private network managed by "trusted third parties", which would explain why companies like Visa would be drawn to it. The defining characteristic of public blockchains is that they are trustless systems that completely disintermediate financial institutions. And IMO while there will be some role to play for banks in the future, our overriding goal should be to marginalize their involvement in a 21st-century financial system.

My advice is, don't look for useful information about crypto tech on mainstream financial news outlets like TheStreet.

HRH Feant2's picture

Fuck off turd. You lost all credibility when you said you dumped all of your BTC for BCH and that you think BCH will replace BTC. Just writing that gave me a head ache. And you think you are going to be able to peddle that shit to the masses? Hahahahahaha.

Your understanding of capitalism is limited.

Go back to shilling silver. No one here will ever believe anything you say.

tmosley's picture

I lost all credibility because I hold an opinion that you disagree with?

That's fine, because you don't need credibility when you have arguments, which is what I deal in. I don't appeal to my own authority.

You should notice that you are experiencing cognitive dissonance. The unwarranted aggression is a high confidence tell.

lickspitler's picture

Mosley the fraud Mosley the bell ringer.

The shit touch, shit finger.

Good bye Bitcoin cash  The Mosley is on board.

 

BeanusCountus's picture

You know way more about this than I do. So is your best guess to ditch regular bitcoin right now?