The third Bitcoin (BTC) block reward halving is set to occur in 14 days and this event is usually preceded by a powerful rally that many have long forecast would bring the digital asset to a new all-time high.
Surprisingly, Joe007, one of the biggest Bitcoin whales in the cryptocurrency market, has implied that the halving is already priced in, which may leave the cryptocurrency vulnerable to a crash.
In a sarcastic tone, Joe007 said: “No, of course it’s not priced in. On the very day of The Great Halvening, everybody will finally realize how underpriced BTC is, and they will all rush to buy it. In droves. With their unemployment checks.”
Joe007 is estimated to be holding a large Bitcoin short position, as shown by data from the Bitfinex leaderboard. It indicates that the trader is down $11.3 million in the past month. Given that the Bitcoin price has increased to around $7,700, it shows the whale is holding a large short position and expects the price of BTC to decrease in the short-term.
A big correction cannot be ruled out
Billionaire investors like Marc Cuban, Carl Icahn, and Paul Tudor Jones are increasingly moving towards cash, hedging their positions anticipating big downtrends to arrive in the stock market in the short-term.
As the coronavirus pandemic expands and major countries remain unsure when to reopen their economies, high-risk assets like single stocks and cryptocurrencies could see subsiding momentum in the coming weeks.
At a technical level, despite the imminence of the halving, a rejection of Bitcoin at a key level like a 200-day SMA at $8,000 could lead to a strong market pullback, as seen in May and October 2019.
Bitcoin Whale Suggests BTC Price Will Crash — Halving Is Priced in, CoinTelegraph, Apr 28