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.
I honestly believe these guys have been in this market already for a long time now and they are doing as much as they can to at least make sure they are taking enough position off as many retail weak hands as possible. I guess we just have to wait and see how things will get to pan out in the long run, and from the look of things, I am beginning to see this point we are now as an accumulative point for them.
Normally, it is understandable that no institution will be dumb enough to want to be investing in an over tapped market, and who knows, they drove it to that level to dump, get out weak hands, accumulate more at the dip to hold more positions, rinse and repeat on the way up again.