There's a chance the recent decline in bitcoin's price we've witnessed is linked to this development. Hedge funds and whales could be pushing the price of bitcoin down to create an entry point for themselves to buy in.
It's possible hedge funds are accumulating. Funding rate on Bitmex flipped positive into the dump with high open interest, so someone was buying the dip in a big way. On Bitfinex as well, lots of shorts closing and longs opening. Here's
some interesting discussion on how the bigger players at Bitmex roll.
It's unlikely to do with the Fidelity development though.
This could represent another indication bitcoin is hitting the prime time, although without the vast leaps in price valuation many of us expected. Perhaps we still might still see a price spike around black friday and christmas holidays?
Hedge funds have been trading the Bitcoin markets for a few years already, so I don't see anything fundamentally new here. I think $6,000-$7,000 looks like a bullish accumulation range, but it's anyone's guess really.
Data points on their infrastructure utilizing cold storage reminded me of xapo storing bitcoin in nuclear bomb shelters--I wonder what ever happened to them. Seems like there hasn't been a reference made to them in some time.
Last thing I saw about them, from May:
The Wealthy Are Hoarding $10 Billion of Bitcoin in BunkersTwo Xapo clients said it houses roughly $10 billion of Bitcoin.