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However, they say this would likely be the random movement of pure speculation or market manipulation rather than anything else. Some argue there is an art to trading bitcoin regardless — but it is a stressful business that takes nerves and can be addictive. But others are unconvinced that bitcoin millionaires actually show investment nous, drawing parallels with gambling. The Chainalysis data also show that the bitcoin marketplace is skewed in terms of wealth distribution. This brings its own risks. Overall, some 1, bitcoin wallets — managed by both speculators and investors — contained at least 1, bitcoin each in April, according to Chainalysis, collectively holding nearly 5 million bitcoin, or close to a third of the available total.

Still, there are opportunities particularly for the larger players to engage in market manipulation, due to the dearth of regulation and existence of informal over-the-counter markets — and this leaves smaller players at a disadvantage. Nevertheless, some point out that the excitement and influx of fresh funds into the market has allowed its infrastructure to mature — albeit gradually — which could be a boon for those looking to trade bitcoin more safely in future.

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Buying and selling bitcoin had traditionally been challenging for all but the most tech-savvy. Many exchanges have strengthened their due diligence processes in response to customer concerns and invested in bigger customer services teams.

Alternative funds are also muscling in. A more formalised over-the-counter market has started to develop, with players such as Cumberland, an arm of Chicago-based DRW, and Goldman Sachs-backed Circle growing rapidly. Much of the future of bitcoin trading will depend on the approach that regulators take, experts say.

There are stirrings across the world, though — to date — little coherence.

Wall Street banks diverge in views on bitcoin boom | Financial Times

Asian financial centres such as Tokyo are now regulating crypto exchanges, while China has banned them outright. Meanwhile, the US Securities and Exchange Commission last month announced a criminal probe into potential bitcoin price manipulation. Banks in particular have been reticent to engage with cryptocurrencies and the companies that handle them, partly due to the difficulty of conducting anti-money laundering checks on transactions. Any more widespread adoption of bitcoin would need regulators, central banks and tax regulators to allow the transfer of wealth movement from the current financial system into the new one, says Gavin Brown, senior lecturer in financial economics at Manchester Metropolitan University and director of cryptocurrency hedge fund Blockchain Capital.

Sunnie, who has been investing in bitcoin since she started working for a crypto exchange back in , did not cash out in December, burnt by a previous experience in when she sold thinking the price was high. The price will go to the moon again — maybe higher. Bitcoin: Who really owns it, the whales or small fry? Long-term holders cash out to short-term speculators, notes data Sat, Jun 9, , The reversal comes just months after SB Northstar was first revealed by the FT to be the "Nasdaq whale" trading billions of dollars' worth of tech options.

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Read more: BlackRock is channeling more cash to high-momentum and relatively small stocks as the economy recovers. These are the 20 companies they're earmarking the most money for. SoftBank faced pressure from several parties to abandon the derivatives stakes.

Some Elliott executives even hedged against SoftBank's bullish positions with their own put options on tech stocks. In recent calls with SoftBank, Elliott reportedly cautioned SoftBank against making another risky tech-stock bet, and instead urged the firm to stay disciplined in its investing.

The hedge fund helped SoftBank recover from a spring plunge by advising the firm to buy back shares and improve governance, according to The Journal. Digital Be informed with the essential news and opinion.

Bitcoin: Who really owns it, the whales or small fry?

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