Bitcoin Whales’ Exchange Withdrawals Hint at 5-Digit Prices in July & Anthony Pompliano Continues Push for Pension Fund Crypto Allocation

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Bitcoin Whales’ Exchange Withdrawals Hint at 5-Digit Prices in July.

Price performance tends to flip bullish four months after peak whale withdrawals from exchanges — and the next cycle is almost here, data shows.

Bitcoin (BTC) investors should buy BTC when whales do one thing in particular — bull runs begin several months later.

That was the latest insight from Ki Young Ju, CEO of on-chain analysis resource CryptoQuant, who revealed that when whales withdraw Bitcoin from exchanges, it’s time to enter the market.

Analyst: Buy BTC before whale cycle is up

Uploading two charts comparing Bitcoin’s 2017 and 2019 bull runs, Ki noted that the start of each uptrend came four months after a peak in whale withdrawals.

The data came via CryptoQuant’s seven-day moving average whale exchange withdrawals metric.

“BUY #BTC when whales send bitcoins out of the exchange,” he summarized in Twitter comments.

“The BULL market usually starts four months after the exchange average withdrawal hits year-high.”

The hint could well prove timely, coming three months after Bitcoin’s most recent annual withdrawal peak in March. If the trend repeats — amid a slew of other encouraging signs for BTC— a bull market should begin in July.

Bitcoin average exchange withdrawals comparison. Source: Ki Young Ju/ Twitter

Bitcoin average exchange withdrawals comparison. Source: Ki Young Ju/ Twitter

Bull trend factors converge for Bitcoin

As Cointelegraph reported, other metrics also suggest that Bitcoin is rebounding from a price bottom. Notably, exchange reserves are now back near their lowest since December 2018, when BTC/USD traded at $3,100.

Miners are also selling less BTC, having briefly sold more than they earned in the aftermath of May’s block subsidy halving.

More broadly, investors have spent 2020 accumulating BTC, with 90% of days seeing net asset increases.

Last week, Ki described how whales tended to wait for quiet periods on exchanges to sell coins, potentially to attract investor attention to their actions.

 

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Anthony Pompliano Continues Push for Pension Fund Crypto Allocation

Morgan Creek’s Anthony Pompliano presses pension funds to allocate 1-5% of their portfolios to Bitcoin.

As pension funds struggle with their funding, Morgan Creek Digital co-founder Anthony Pompliano continues to press them into adding more Bitcoin into their portfolios.

In a letter to investors, Pompliano said pension funds like the California Public Employees’ Retirement System (CalPERS) will do well to invest in Bitcoin instead of increasing their allocations of illiquid assets. “It is as clear as possible — adding an allocation to Bitcoin would increase the risk-adjusted returns for a public pension fund,” said Pompliano.

He suggests pension funds allocate between 1-5% of their portfolios in Bitcoin. He added:

“And you want to know where the greatest innovation is occurring at the moment? Bitcoin. There is a group of individuals who have built a $150+ billion asset with the goal of assuming the position of the next global reserve currency. If that happens, it will be the best performing asset for the next 20+ years. But even if that doesn’t happen, things will be okay.”

Morgan Creek has long pushed for more pension funds to take at least 1% allocation in Bitcoin. CEO Mark Yusko said in January that if foundations had a 1% allocation five years ago, they would’ve made 9.2% in alpha–or the performance of a portfolio relative to a benchmark–than the 7.2% they actually made in that time period. So far, there are two pension funds from Virginia that invested in Morgan Creek.

Morgan Creek is not the only industry player seeing the potential for crypto’s growth within the pension world. Avanti Bank founder and CEO Caitlin Long told Cointelegraph in April that the crypto and blockchain industries need to prove they are solvent to big pension funds like CalPERS.

 

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