The last few days have seen Bitcoin surge towards $9,500. What’s more, the crypto industry is also full of positive crypto sentiment. Now, however, one influential crypto whale is arguing against some of the bullish predictions making the rounds.
Top Bitfinex trader skeptic to bull run
As anyone watching the crypto markets will know, many traders are currently bullish. Numerous technical indicators suggest a Bitcoin rally could be imminent. Furthermore, high-profile crypto figures are issuing fantastic price guidances for the premier cryptocurrency.
Nevertheless, a highly respectable cryptocurrency trader is now urging caution. Specifically, this plea comes “Joe007”, who was the top trader on Bitfinex in the last two months. In fact, this crypto whale saw approximately $20 million in profits from December through January.
Consequently, Joe’s word carries significant weight in the cryptocurrency community. In a Twitter reply to one user urging Joe to “be one with the trend”, Joe highlights the importance of watching financial metrics.
“Trends don’t magically “happen” – they are based on supply/demand imbalances and backed by fiat in/out-flows. Anyone who doesn’t understand this and sees BTC as some black box that magically “does what it always does” has no business trading.”
With this statement, Joe appears to be urging traders to look beyond the Bitcoin bull run hype and study details. Specifically, Joe says that traders should look at the influx of fiat into the cryptocurrency markets.
Could bullish hype just be “noise”?
Furthermore, Joe points to the market capitalization of Tether as a potential source of worry. Some analysts use the premier stablecoin as a measurement of how much capital is entering the cryptocurrency markets.
This directly relates to a recent statement by Mati Greenspan, who says billions could enter the world of crypto at “moments notice”. Joe, however, suggests that there is more or less flat growth in Tether since July of 2019.
“Actually, there isn’t much growth [in Tether] since July last year. Which would be very hard to explain from a position that we’re in the middle of the new bull market.”
In another tweet, Joe goes on to note that the fiat inflows would have to increase in order for him to join the bullish Bitcoin choir. Until that happens, Joe warns, the rest of the market’s news is just “noise”:
“I’ll believe it when I see the fiat inflows, sure. All the rest is just noise/posturing. It may seem oh so exciting to noobs but I’ve heard it all thousands of times, during all phases of market cycle. Means nothing.”
Rasmus Pihl is a writer for Toshi Times by day and an avid follower of the cryptocurrency industry by night. Rasmus holds a Bachelor’s Degree in Marketing from the Gothenburg School of Business, Economics, and Law and runs a Swedish marketing consulting firm. Moreover, when he isn’t writing for Toshi Times, traveling, working or changing the world in some other capacity, Rasmus is more than likely caught up in postgraduate studies.