Well, friends, here is another piece of news from the category of 'warning bells' for the crypto market. While you believe in the endless growth of Ethereum and Bitcoin, major players like Meitu are not wasting time. This Chinese company, known for its investments in crypto, decided that it was time to 'hit the brakes' and cash out a whopping 31,000 Ethereum and 940 Bitcoin. This happiness brought them no less than $180 million. And what are they doing with this capital? 80% of the amount is for dividends. Apparently, shareholders urgently needed new yachts.
Crisis for some, cash for others
Let's think: what does it mean when a company with such an impressive crypto portfolio suddenly decides to sell? It is clearly not because they believe in the bright future of cryptocurrencies. No, friends, this is called profit-taking. Or, to put it simply, exiting the market while there is still something to take away. And who remains? That's right, those who continue to hope for another 'to the moon'. And let's be honest, this move by Meitu sends a clear signal: major players are not so confident in the continuation of crypto paradise.
Who’s next?
At the moment, small investors can only guess: which of the giants will pick up this baton of sales? Maybe Tesla will sell off bitcoins again, or someone else will decide to 'free up' their portfolios. One way or another, such moves create waves of instability. After all, every major dump of cryptocurrency is not only a drop in its price but also a gradual destruction of trust.
Why is this important?
Yes, Meitu explains the sale as a concern for dividends. But who said that this is the only reason? Perhaps, behind the scenes, there is an understanding that the volatility of crypto may soon turn into a prolonged decline. Meanwhile, simple investors continue to believe in ephemeral $100,000 for Bitcoin and $10,000 for Ethereum, while the 'whales' are taking profits and going to cash.
So, if anyone still thinks that cryptocurrency is a stable asset for the long term, maybe it's time to reconsider your views. After all, if those who should be its 'advocates' are leaving themselves, what is left for you?
While some dream, others act. And guess who ends up in the black?