ETFs, Leveraged ETFs, Sector Funds

[No-Quarter]

Another compelling reason to hold/watch Bitcoin.

https://www.zerohedge.com/markets/just-5-all-bitcoins-circulation-have-traded-past-year

The reason, as JPM has discovered, is that bitcoin's float may be as little as 5%, if not less. Discussing the daily trading volumes of bitcoin, JPM notes that a large fraction of Bitcoin are locked up in illiquid entities (liquidity sinks), "with more than 90% not changing hands in more than a year" while roughly 80% - and rising - are held by wallets with light turnover. This means that a paltry 5-10% of all bitcoin in circulation has traded in the past year.

Another way of putting it: an asset with a $600 billion market cap has a float of just $30 billion. Which is remarkable as it means that no whales sold bitcoin when it hit its all time high of $65,000. And if they didn't sell then, they certainly won't sell now when it's half that price.

This, more than anything else, explains why bitcoin - an asset whose market cap was more than a $1 trillion as recently as April - is so extremely volatile: with the vast majority of bitcoin locked up or held by whale accounts who rarely if ever trade, the marginal price setter of bitcoin are odd lots - a burst of trading in fractions of a bitcoin, where the momentum in many cases is ignited and magnified by HFTs who then shape the movement of the crypto in hopes of hitting the max pain stop loss positions for other cryptos, and where as a result of such a unique trading environment, the price of bitcoin can swing 10%, 15% , or even 20% or more every day.