A high-volume Bitcoin whale who goes by the name Joe007 says crypto traders are falling for fictional narratives about the crypto and traditional markets.
In a new Bitfinex Pulse post, the closely-followed Bitfinex trader lists several potential price catalysts that have captured the imagination of many crypto enthusiasts, including the Fed’s intervention in the monetary supply and Bitcoin’s third halving.
“So, you still believe in fairy tales such as ‘FED goes brrrrrr, hyperinflation soon’, ‘Tether printing to buy crypto’, ‘Halvening magically increases price’ and so on? Sorry, I can’t help you then.”
The trader shares a link to an article by Jeff Snider, the head of global research at Alhambra Investments.
Snider says that the Federal Reserve is on top of the fiscal situation despite fears of inflation from the rampant money printing.
“Powell said Sunday something specific about a digital money printer – and the media went nuts with it, filing story after story. Yet, the strong dollar remains – as do other ‘safe haven’ signals like bond yields and deflation expectations in TIPS [Treasury Inflation-Protected Securities].”
In less than half a year, the money supply (M2) surged by over $2 trillion from $15.33 trillion at the start of the year to $17.99 trillion this month. Meanwhile, analysts expect the Fed’s balance sheet, which hovers at $7 trillion, to soar to $9 trillion by the end of 2020.
On May 8th, Joe007 deleted his Twitter account, saying that public interaction adversely affects his trading.
The whale has long cautioned that Bitcoin’s trading volume has been far too low in 2020 and many more traders will need to enter the space to ignite a new, sustainable rally toward all-time highs.