May 29, 2024 Grandpa checks in
Yesterday, a large amount of Bitcoin was suddenly transferred out of a Mentougou address. There were 10 transactions with a total of more than 140,000 Bitcoins, with a total value of nearly 10 billion US dollars. This was the first time that the cold wallet address of Mentougou had moved after 5 years. These 140,000 Bitcoins also attracted the attention of the market. There is no doubt that the most worrying thing about Bitcoin in Mentougou is the transfer and dumping. After all, according to the price at the time of the theft, Bitcoin has increased by 100 times. After the creditors get back their own Bitcoins, it is difficult to withstand the temptation of such a huge profit.
However, for the old investors, it is not the first time that there are rumors or news about Mentougou's market crash. The amount of Bitcoin held by Mentougou is half of that of Grayscale or BlackRock, the top funds of futures ETF and spot ETF respectively. By comparison, everyone should be able to feel the deterrent effect of Grayscale's holdings on the market. Therefore, I don't think we need to be too nervous about the threat of Mentougou. First of all, it is impossible to wash all the Bitcoins and deliver them to creditors in the form of coins at once. As long as they are sold slowly, the market's ability to bear the losses is sufficient. Of course, if Mentougou's Bitcoins are confirmed to be sold in full, the market will definitely hit a big hole, but the possibility of selling all of them is very small.
In addition, according to monitoring data, BlackRock's Bitcoin holdings have reached 288,670, surpassing Grayscale's 287,450, becoming the ETF holding the most Bitcoin. Since the ETF, BlackRock has been the main force of capital inflow, while Grayscale has been the main force of capital outflow. One started from 0, and the other started to decline from the peak. The reversal of the number of holdings means that the selling pressure of the ETF will come to an end. After all, the large amount of funds added this year will definitely not flow out easily. This also indirectly shows that the ETF will bring more opportunities to the market in the future, rather than risks.
However, it does not mean that there is no risk in the market. The repeated testing of the 70,000 pressure of the big cake itself contains huge risks in the market, just like I have repeatedly said in the past few days that you can sell the bargaining chips before the pressure of 4,000. Because except for the ETF itself, we cannot predict any potential risks. In addition, the meme market in the past few days is extremely hot. For the market, if any sector is overheated, if there is no sign of capital flowing into other sectors, it will increase the risk of short-term market.
Thank you for your attention and likes.
