Bitcoin (BTC-USD) has consolidated at approximately $49,000 (£36,480), as other traders liquidate their positions, the following top 10 investors see an opportunity to “buy the dip”.
Bitcoin has fallen by nearly 20% in December and a cloud of uncertainty has fallen upon investors.
Diamond hands are showing cracks and the much-touted crypto-Christmas sell-off looks close to becoming a reality.
However, the following major investors are not falling victim to mass selling pressure and see opportunities when charts turn red.
1. Micheal Saylor
Saylor is the chief of Microstrategy, which has invested heavily in bitcoin since August 2020. After the crypto flash crash on 5 December, Saylor announced that MicroStrategy had purchased $82.4m worth of bitcoin, amounting to 1,434 bitcoins. This brings the total number of bitcoin held on MicroStrategy’s balance sheet to 122,478. On 15 December Saylor posted a Christmas message on Twitter advising; “If you are in need of a holiday gift, bitcoin is on sale.”
2. President Nayib Bukele of El Salvador
President Bukele was the architect of El Salvador’s bitcoin experiment that went live on 7 September. Immediately after the cryptocurrency was made legal tender in the Central American nation the price of bitcoin crashed. Media naysayers relished the opportunity to criticise Bukele who instead doubled down and kept “buying the dip”.
Bukele’s dollar-cost averaging with Salvadoran taxpayers’ money throughout the leaner weeks in September eventually paid off as the price of bitcoin soon began to increase. Bitcoin then reached a new all-time high of $69,000, driven in no small part by fiat currency inflation. After the early December bitcoin flash crash, Bukele has not changed his approach. To celebrate the hour of 21:00 on 21 December he tweeted that his government had bought 21 bitcoins, saying, “and we are buying 21 bitcoin for the occasion”.
3. Bitcoin pioneer Max Keiser
Max Keiser remains ever bullish on bitcoin. He told Yahoo Finance: “In 2021 bitcoin outperformed everything again and will continue to do so for the next 100 years. In 2022, bitcoin will dethrone gold and change the world forever.”
At the Miami Bitcoin 2021 conference in early June, the vocal proponent of bitcoin met Michael Saylor on stage and shouted his now famous: “We’re not selling, f**k Elon”, in reference to Musk’s tweets that caused a rupture in the crypto-market.
4. Tyler Winklevoss, and twin brother Cameron, reportedly hold about 100,000 bitcoins
The Winklevoss twins began their investment in bitcoin early in its development. In 2013 the brothers claimed they owned approximately $11m worth of bitcoin through their company, Winklevoss Capital. The brothers have been buying bitcoin since 2013 and reportedly own 1% of bitcoin in circulation.
Winklevoss has recently given advice to those forecasting a prolonged fall and considering shorting bitcoin. He recently tweeted: “Bitcoin has now ‘died’ more than 435 times, thoughts and prayers to all of the shorts out there. It must have been a tough road these last 10 years. The next 10 years won’t be any easier. Just a hint.”
Watch: ‘The value of bitcoin is probably zero’
5. Barry Silbert owner of the Grayscale Bitcoin Trust
Silbert is the founder of the Digital Currency Group which manages the Grayscale Bitcoin Trust. The company has invested in more than 165 blockchain and cryptocurrency-related companies. Grayscale holds 654,600 bitcoin on behalf of institutional investors. In late November, investment bank Morgan Stanley bought the dip to top up their total of 6.5 million of Grayscale’s bitcoin shares, now worth over $300m.
6. Elon Musk
Musk caused cryptocurrency markets to crash when he tweeted that he had fallen out of love with bitcoin on 4 June. He had put a broken heart emoji next to “bitcoin”. However, Tesla has reportedly purchased $1.5bn in bitcoin in 2021.
In late October, Musk reaffirmed his conviction in bitcoin when he tweeted: “Out of curiosity, I acquired some ascii hash strings called “Bitcoin, ethereum & doge”. That’s it.”
7. Paul Tudor Jones
Hedge fund manager Paul Tudor Jones has highlighted that bitcoin is undervalued. He bought bitcoin in 2020 and throughout 2021. In 2020 he was one of the only hedge fund managers to hold a bullish sentiment towards bitcoin. In mid-2020 he claimed bitcoin was undervalued. At the time he bought bitcoin as a hedge against inflation. He has added to his crypto position, and in October told CNBC: “Clearly, there’s a place for crypto, clearly, it’s winning the race against gold at the moment.”
8. Michael Novogratz founder Galaxy Digital Holdings
In September when bitcoin was in bearish momentum, Novogratz spoke to CNBC to say that he was not worried about market sell-offs and that red chart signs were a “buy-the-dip” opportunity.
Wood’s investment company has been buying into the tech-driven bull market since 2014. In September, Ark Next Generation Internet exchange-traded fund (ARKW) added bitcoin to its prospectus for clients, via Canadian ETFs. Several bitcoin ETFs have been launched in Canada throughout 2021. Speaking to Yahoo Finance in October she said: “Bitcoin is a new global monetary system. It is a rules-based monetary policy. It is completely decentralised it is a hedge against the whims of policymakers.”
Recently Twitter’s (TWTR) Jack Dorsey posted an image on Twitter warning the profits and power promised in the Web 3.0 revolution could be funnelled into the hands of Silicon Valley venture capitalists. In the image that was posted a water pipe feeding profits into the mouths of greedy venture capitalists had an ethereum logo on it.
This began a Twitter row where the outspoken bitcoin maximalist was forced to defend his vilification of ethereum (ETH-USD). On 23 December Dorsey tweeted: “I’m not anti ETH. I’m anti-centralized, VC-owned, a single point of failure, and corporate-controlled lies. If your goal is anti-establishment, I promise you it isn’t ethereum. Don’t believe or trust me! Just look at the fundamentals.”
Dorsey later showed his backing for bitcoin by claiming it will eventually replace the US dollar. Singer Cardi B asked him earlier this week if bitcoin would ever replace the dollar, he answered, “yes, it will”.