Many businesses use technical analysis, on-chain data, and basic fundamentals to determine the direction of their business, but there is one more important metric that is sometimes omitted or simply forgotten. What some TA fanatics tend to forget is that these charts are more than charts, they actually measure human activity and behavior. Markets are basically people and more precisely, those participants collectively make decisions and actions. However, not all behaviors are charted and you can miss some of the most accurate and powerful signals if you don’t actively evaluate the behaviors of influential players.
In recent months there has been a lot of attention and focus on large corporations like Griscale and Microstrategy. Both companies have bought a lot of bitcoin for various reasons. Grayscale is forecasting a significant increase in demand for bitcoins and their funds are growing, with a greater focus on professional investors and participants in the traditional cryptocurrency market.
Microstrategy CEO Michael Sailor, on the other hand, has chosen Bitcoin as their current long-term cash fund or “cash-saving” alternative because of his interpretation of future markets. There are many more big names that have shown support and acceptance of the top crypto resources in recent months. Many have interpreted this as a very bullish sign for Bitcoin as larger corporate names are now entering space. It is very bullish but more bullish than that which is not being mentioned.
The underlying message is that it is all very exciting and confirms the veracity of the narrative that institutional money will begin to enter the market. What many are unaware of is that many traditional finance players have already been actively involved in this market for several years. Care is limited to managing personal and personal abilities to protect their careers and positions in the world of financial means.
This is where the real bullishness of the recent activities in the bitcoin space of institutional players comes into view. Paul Tudor Jones announced that he had transferred 2% of his assets to Bitcoin, more significant than many had realized. One billionaire hedge fund investor with an outstanding reputation has decided to move to Bitcoin, the strongest bullish indicator and this is not for obvious reasons.
A man of such height and position is actually quite limited in his investment choices he is able to exercise for this one important reason. Say Jones made an investment in e-gold that was later shut down by the U.S. government, he would have been happy.
This could have tarnished his reputation forever and his career would probably have stopped grinding. This is exactly why when men like Jones publicly announce their move to Bitcoin, you need to be aware of one thing! They are confident about the stability and future of BTC and have the information that confirms it. In other words, the possibility of significant damage has been completely eliminated or is rather minor.
I leave you with the thought, JP Morgan entered the gold mining sector as Warren Buffett, the largest ever fined for manipulating the price of gold?