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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maxblockm's picture

DAGs = Directed Acrylic Graphs???

tmosley's picture

Exactly. Hopefully they will come up with some anonymity features, fix their buggy and potentially insecure code, and get on some big exchanges so I can go all in.

slipreedip's picture

I think it will also loose popularity when people understand how much power has to be used to "mine" this stuff.

The power consumption for this stuff will become untennable.

HappyDeathMetal's picture

Once more of the pedophilia exposure of the elites roll out, it will build and build until more secrets come out, including the energy technologies, it will unravel and have a snowball effect. Plus, not all cryptos need to be mined, check out Skycoin for instance.

Blazing in BC's picture

Mining for bitcoin is bullshit, satshi has all 21,000,000 in his account...no different than the FRN, have 1 worth $1 or 1 worth $1,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000

Golden Phoenix's picture

...because having a bank on every street corner uses so much less power.

HappyDeathMetal's picture

There are ways around this. Research some of the hundreds of cryptos out there. Even simple wallet verification scans from a third-party trusted wallet company can speed up processes for payments for interested companies. The technology will grow exponentially and most people won't even realize what the hell happened when we're living in sci-fi world as the doomers are sad the world didn't fall apart.

oncemore's picture

Tullips for sale!

anybody interested?

Sizzurp's picture

You must be a Gartman fan.

slipreedip's picture

At least withg a tulip you get a nice flower every year.

Nature_Boy_Wooooo's picture

Lol, I bet the BCH pump and dump game plan didn't account for this guy buying the fuck out of the fucking dip.

This makes sense as to why the pump reversed so quickly.

 

rp2016's picture

stop calling it investment option.

saldulilem's picture

Absolutely! Segway did fundamentally change the way we live

Obsidian Samctum's picture

Lmao a 20 billion dollar pump and you think 25 million reversed that? The fyck outta heah mofo

Late onset ADHD's picture

own the pump... no need to buy the dip...

Nature_Boy_Wooooo's picture

Considering that a big part of the pump was dependent on a Bitcoin selloff........an unexpected buy of 20 million stabilizing Bitcoin prices would have an unanticipated effect.

BCH pumpers got flanked.

 

 

PotusNextus's picture

Well, the world is full of criminals and millenials...

Obsidian Samctum's picture

Thank God for millenials, the absolute greatest generation of all time, otherwise, the shit for brain dumbfuck baby boomer would run this world to the ground. Look at what these baby boomer swine are doing to this nation.

vaporland's picture

Boomer here. So long and thanks for all the fish. The world was our ashtray, enjoy the butts.

Millennials will need to learn how to use fondleslabs after Kim jong un’s EMP fries mr jobs’ devices.

Shit for brains? Your smartphones have made you stupid...

slug1's picture

Governments will let the private sector build out shitcoin infrastructure and then either shitcoin will be made illegal or it will be included as a small % in the IMF SDR universal currency that will be introduced to run on the crypto infrastructure.

Mr_Potatohead's picture

There is no way that bitcoin will be included in the SDR basket.  But what the Chinese and Russians have been doing recently, there's a very good chance that the shiny yellow stuff at the bottom of the pyramid will be.  If you don't believe me, perhaps you should read a little about how the IMF was formed --> https://www.amazon.com/Rules-Game-Evolution-International-Monetary/dp/02...

Interesting historical read from 1982 - long before much of the current financial shenanigans got out of hand.

Mr_Potatohead's picture

Also explains creation of the SDR.

Late onset ADHD's picture

buy the dip... and flip...

robertocarlos's picture

The housing bubble changed the way we live. Now we sleep outdoors.

VWAndy's picture

 So one guy with a fat stack a fiats can change bitcoins value with a phone call? Good thing to know.

Nature_Boy_Wooooo's picture

Bitcoin is down 15% in this timeframe, he reversed the sell off during the BCH pump.

Reading comprehension is not your strong point.

 

 

 

 

 

MagicMoney's picture

As you can see supporters of Bitcoin have no convincing argument of investing into Bitcoin other than what is plainly obvious. It is bubble mania. If only they could use substantive reasons for their argument. At least the fund manager admits it is a bubble.

Jay's picture

BCH, when launched, was held artificially high in value because most BTC holders couldn't access the coins to dump them. As more and more people gained the ability to dump BCH, it's price went down and down. This proved the BTC argument that people don't want to spend BTC. They want to buy and hold and use it as gold. They are willing to wait until the core development team implements improvements that allow it to scale "gracefully" (if that's possible). BCH's scaling solution makes mining much more concentrated, consolidated, and centralized. Now suddenly, whoops, people have changed their mind. Now they have an overwhelming need to buy coffee with BTC. I don't think so. This is not the flippening. It's the pumpening of a dying fork. Nice try though.

chubakka's picture

i thought the mystery buyer was tmosley.

Nature_Boy_Wooooo's picture

tmosley bought into the BCH pump and dump and sold all of his Bitcoin to this guy.

tmosley is gonna gamble on BCH......thinks he can time the market between pump/dump.

FBaggins's picture

Was bitcoin hacked and is that why it fell? Perhaps if those into it over their heads like Novogratz did not step in the prop it up it would be worthless.  

MusicIsYou's picture

Regardless of what made it drop, bitcoin will eventually be named a criminal enterprise and subject to asset forfeiture laws.

fearnot's picture

Challlenge : This question is for anyone who has traded gold futures for a minimum of 10 years, actually made money (my experience 38 years) THAT ALSO has jumped into the bitcoin frenzy.Or If Clif High or Bix Weir can comment that would be big.

After what happened with price movement in a measly $20M trade in a $100B Bitcoin market - .02% of market cap are you stupid or ust full of blind greed in believing you can exit your positions profitably before an "A.I." created bitcoin bankster controlled algo smashes the market.

Compare what happened on trading on Sunday, October 12 -13 in Bitcoin where .02% of market cap supposedly moved the market by 30% off its lows to the $4b or 33,000 contracts of comex gold - 6% of O.I.  - that traded in 10 minutes but smashed the price down by only .8%.

The don't call Bitcoin a crypto blockchain currency for nothing - Bitcoin will chain everyone in at no escape before the crash

 

 

 

Codwell's picture

Simply quite odd that what one might consider smart investors all proceed to tell you all about distributed ledger crypto technology when they are pressed as to why bitcoins have any value.

Bitcoins have no relationship to the  value of the technolgy, anymore than emails have value because of the technology of the email system.

If someone was really smart they would have copyrighted the distributed ledger codes. 

 

 

fearnot's picture

Challlenge : This question is for anyone who has traded gold futures for a minimum of 10 years, actually made money (my experience 38 years) THAT ALSO has jumped into the bitcoin frenzy.Or If Clif High or Bix Weir can comment that would be big.

After what happened with price movement in a measly $20M trade in a $100B Bitcoin market - .02% of market cap are you stupid or just full of blind greed in believing you can exit your positions profitably before an "A.I." created bitcoin bankster controlled algo smashes the market.

Compare what happened on trading on Sunday, October 12 -13 in Bitcoin where .02% of market cap supposedly moved the market by 30% off its lows to the $4b or 33,000 contracts of comex gold - 6% of O.I.  - that traded in 10 minutes but smashed the price down by only .8%.

Volume is Bitcoins enemy.

They don't call Bitcoin a crypto blockchain currency for nothing - Bitcoin will chain everyone in at no escape before the crash

 

 

 

Branded's picture

On an unrelated note; how's that Vegas Investigation goin'? Did the FBI ever settle on a story?

floosy's picture

Move along please sir....look here's a shiny pretend gold coin thingy to keep your attention.

OccamsCrazor's picture

NO !!! NO!!! NO !!!.

 

THIS FRAUD IS A FUCKING LIAR !!!  HIS FUND STEPPED INTO BUY, BECAUSE OTHERWISE HE WOULD HAVE LOST HIS FUCKING ASS IN HIS VERY WRONG WAY BET.  THIS IS NO DIFFERENT THAN THE FED STEPPING IN, EXCEPT THE MARKET IS MUCH MUCH SMALLER AND EASILY MANIPULATED.

 

IF YOU BELIEVE THIS ASSHOLES BULLSHIT, THEN YOU DESERVE TO LOSE EVERY PENNY YOU OWN, BY BUYING THIS GARBAGE.

HE WAS SCARED SHITLESS WHEN IT DROPPED BELOW $6000.  HE HAD NO CHOICE, BC HE ALREADY LOST MILLIONS. SO HE DOUBLED DOWN.  

THIS FOOL DESERVES TO ROAST, AND CAN"T ADMIT HE HAS NO CLUE WHY IT FELL. 

 

INSTITUTIONALS ARE NOT GETTING INTO THIS SHIT LIKE HE SAYS THEY ARE.  HE"S A FRAUD. A CON MAN. A FUCKING LIAR ! 

Golden Phoenix's picture

 

To get caps lock, bold, and exclamation point level triggered one can only guess you bought the BCH top.

 

PitBullsRule's picture

I remember when they said this same kind of crap about DrKoop.com

They were worth nothing, but people made millions selling them on the way up.  As long as you don't buy at the top, its great.

MusicIsYou's picture

As if bitcoin isn't going to be confiscated by the treasury.

Pearson365's picture

Look, a cute fuzzy rabbit.

J Mahoney's picture

I may be a dummy but could someone answer one question--- What stops the creator of these cryptos from creating more out of thin air and not telling anyone --sorta like central banks?

floosy's picture

Trust.  Hey you trust them? Right?

Obsidian Samctum's picture

The cap for 21 million bitcoin to ever exist is coded into the protocol. To increase reduce that cap would require a hardfork, one which nobody who own bitcoin would agree to as it devalue their holding. If you own 1 btc, would you want to increase the 21 million cap?

Its a lot more complicated than that. I suggest you read the bitcoin white paper and do some research as I thought the exact same thing. I also thought the ruling class will not allow it.

Two Theives and a Liar's picture

^^This^^ Is what gives BTC it's "value". Changes would ripple thru the blockchain. If this is fucked with BTC would essentially be "over". 

Fireman's picture

Who guards the guards guarding...the guards? Once the herd is sold and under control, the government as always.

 

https://www.youtube.com/watch?v=OdKa9bXVinE