After the Jack Dorsey led financial services company, Square announced its purchase of 50 million dollars worth of Bitcoin, the cryptocurrency markets saw a surge of around 5 percent.
Bitcoin analyst Willy Woo sees the move by Square as a precursor to a whole wave of high powered buyers that will be rushing into the cryptocurrency sector.
“Square’s buy of 4,709 BTC and Microstrategy’s 38,250 BTC is the tip of the iceberg. The last 8 months has seen a reduction of 250,000 BTC in the speculative stockpile sitting on exchanges signalling many other *unannounced* investors have been scooping coins off the market.”
Just days ago, Woo tweeted that there were signs of a wave of new buyers coming into the Bitcoin market.
“When coins on spot exchanges drop, it’s a sign that new buyers are coming in to scoop coins off the markets and moving them into cold storage HODL, we are seeing new HODLers right now. Very macro bullish.”
And Willy Woo thinks big companies aren’t the only forces that will be moving the market. He says other whales will be joining in as well. He explains that within the networks of CEOs and other captains of the industry, are other wealthy and aggressive investors who are interested in new ways to invest their money.
“BTW, it’s likely much of the coins being scooped up are from many HNW individuals based on the number of new participants coming in.”
Woo opines that HNWs or high net worth folks will be following suit with the heavy hitters like Square.
For years, cryptocurrency enthusiasts have been clamoring for major companies to jump into the Bitcoin scene. If major industry leaders begin to trade their dollars for BTC, a clear signal would be sent that big-time players are starting to recognize the value of bitcoin.