A Signal Not Found In The Charts
Many traders make use of technical analysis, on-chain data and basic fundamentals to dictate the direction of their trades but there is another very important metric that can sometimes be excluded or simply forgotten. What some TA fanatics tend to forget is that those charts are more than charts, they are actually measuring human actions and behavior. The market is in essence people and more specifically, the decisions and actions those participants collectively make. However, not all behavior is charted and if you are not actively assessing the behavior of influential players you may miss out on some of the most accurate and powerful signals.
In recent months a lot of attention and focus has fallen on large corporations such as Grayscale and Microstrategy. Both entities have purchased significant amounts of Bitcoin for very different reasons. Grayscale are predicting a significant increase in the demand for Bitcoin and are increasing their fund, which is focused more towards professional investors and traditional market participants.
Microstrategy on the other hand have chosen Bitcoin as an alternative measure to their current long-term cash fund or "cash reserves" due to CEO Michael Saylor's interpretation of future markets. There are many other big names that have in recent months shown support and adoption of the top Crypto asset. Many have interpreted this as a very bullish sign for Bitcoin due to the fact that large corporate names are now entering the space. This is very bullish but what is more bullish is what is not being mentioned.
The Underlying Message
This is all very exciting and affirms the narrative that institutional money would eventually begin to enter the market. What many are unaware of though, is that many traditional finance players have already been actively involved in this market for several years. Restricted to operating in a personal and private capacity in order to protect their careers and positions in the traditional world of finance.
This is where the true bullishness of recent activity within the Bitcoin space by institutional players is going unnoticed. Paul Tudor Jones announcing that he had moved 2% of his wealth into Bitcoin was way more significant than many have realized. A billionaire hedge fund investor with an outstanding reputation decides to move into Bitcoin is the most powerful bullish indicator and not for the obvious reasons.
A man of such stature and position is actually quite restricted in the investment choices he is able to exercise for this one very important reason. Say that Jones had made an investment in e-gold that was later shut down by the US government, he would have been a laughing stock. This would have left his reputation tainted forever and his career perhaps brought to a grinding halt.
This is exactly why when men like Jones publicly announce a move into Bitcoin, you need to be aware of one thing! They are convinced of the stability and future of BTC and have information that confirms this. In other words, the potential for significant loss has been completely removed or is rather miniscule.
I leave you with this thought, is it sheer coincidence that Warren Buffet entered into the gold mining sector weeks before JP Morgan gets hit with the largest penalty ever for manipulating the price of gold?
