A famed crypto whale, going under the pseudonym Joe007, has signaled that the crypto markets may not be as healthy as they seem. Per the unidentified trader, a distinct lack of fiat inflows via the stablecoin, Tether, points to trouble brewing for the nascent market.
Joe007 stands as Bitfinex’s best trader, citing (unrealized) profits of $1,788,641—head and shoulders in front of his closest competitor. Now, the whale has issued a stark warning, insinuating that a deficiency in fiat inflows may buckle hopes of a renewed bull market.
In response to an overzealous bitcoin bull touting $10,000 resistance ‘breaking’’ as the next major catalyst, the whale implied that nothing is ever that simple:
Trends don't magically “happen” – they are based on supply/demand imbalances and backed by fiat in/out-flows. Anyone who doesn't understand this and sees BTC as some black box that magically “does what it always does” has no business trading.
The whale added that there hadn’t been “much growth” in Tether’s market cap since last July, leaving the crypto market without the fuel required for a rally.
Actually, there isn't much growth since July last year. Which would be very hard to explain from a position that we're in the middle of the new bull market.
— Joe007 [I identify as overweight dolphin] (@J0E007) February 2, 2020
However, one Twitterati disagreed with basing a bull market on Tether’s market cap alone. Instead, they proposed that other “narratives” for bullishness would continue to prop up the market. To this end, the whale simply retorted: “I’ll believe it when I see the fiat inflows, sure. All the rest is just noise/posturing.”
While the whale implies that Tether has neglected to grow since last July, the stablecoin has still managed to add an impressive $1 billion to its marketcap in that time—climbing from $3.6 billion at the start of July 2019, to $4.6 billion at press time.
Not bad, but it may not be enough to sustain a prolonged bull run.
Featured image by Richard Sagredo on Unsplash.
