Billionaires are cashing their crypto wealth – does that mean a crash is coming?

0

Last Updated on 31 July 2024 by CryptoTips.eu

In the United States, CEOs and board members of listed companies are required to disclose when they sell their shares or stock options.

Some well-known billionaires who made their wealth through the rising price of Bitcoin and other cryptocurrencies have been selling hundreds of millions of dollar worth of stocks in recent weeks.

Last week there we saw a small tech correction and many are predicting an AI bubble. If markets do crash, Bitcoin will probably not remain stable either. Do these billionaires know more than you and I and that is why they are choosing to cash out now?

Advertentie.

Stability

If you compare the price of Bitcoin over the past year to the period between 2017 and 2024, you can see that we have entered a fairly stable period since March. Between the third and seventh month of this year, the largest digital coin moved within a trading band with a floor of $55,000 and a ceiling of $75,000. Very stable.

In addition, during that period we experienced the so-called ‘halving’, which normally means that a rally is coming in the following months (unless we already got that one with the ETF approval in January).

It is therefore all the more remarkable that two billionaires, who became extremely wealthy thanks to crypto and saw the shares of their respective companies rise, are now converting a large part of their wealth into fiat.

Michael Saylor, the well-known founder of Microstrategy, a software company that purchases Bitcoin in large quantitities, has sold around $350 million worth of shares since the beginning of this year.

Brian Armstrong, CEO of Coinbase, the largest crypto trading platform in the United States, sold approximately $210 million worth of shares.

Shares of both Microstrategy and Coinbase are already up more than 100% this year, thanks largely to Bitcoin’s rise.

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / [email protected]
View all posts