- There are speculations of Robinhood acquiring $3 billion in Bitcoin.
- But there are no confirmations yet from them. There are positive and bad sides to the investment.
For many weeks, there’s an increment in the chaos in the crypto market. Many whales are engaging in many trades, including buying and selling. Recently, a crypto wallet became the third largest Bitcoin wallet holder. However, the identity of the wallet remained unknown. But now, there are links of this wallet address to a large investment firm, Robinhood.
Robinhood, a Suspect of a $3 Billion Bitcoin Investment
- Some days back, the crypto market was in confusion after an anonymous wallet became the third largest Bitcoin wallet holder. However, there are strong links to the identity of this wallet belonging to Robinhood.
- According to on-chain data, the address in question accumulated a staggering 118,000 BTC. At the time of this investment, the worth was around $3 billion. While these accusations continue, there’s no confirmation or denial from this investment giant. Apparently, they maintain silence despite the demand for answers.
- Robinhood has a large amount of Bitcoin in its possession. So, their filing to the Securities and Exchange Commission shows they have $4.24 billion in Bitcoin. The time they made this filing was in June. So, the estimated amount of Bitcoin was around 139,016 BTC.
- Another angle to this suspected acquisition is that Bitcoin doesn’t actually need big financial institutions to succeed. Large institutions holding that amount of Bitcoin is even a problem.
The Downside of Robinhood Buying $3 Billion Bitcoin
- While there’s a kind of jubilation regarding Robinhood links of buying that amount of Bitcoin, there are also concerns regarding the purchase. Apparently, everything comes down to how this investment firm operates. Those who are major traders on this platform have a bad reputation for speculative trading, notably in meme stocks like AMC, GameStop, and Bed Bath & Beyond.
- They also have a large number of memecoin investments, such as Dogecoin. In fact, they have a whopping $2.6 billion Dogecoin investment. But this is not even the major highlight of the concern.
- This investment firm is known for short trading in the crypto market. Furthermore, Robinhood doesn’t buy to hold. They mostly dump an investment even if there’s a slight price drop. While there’s joy in them getting a $3 billion Bitcoin investment. What happens after they sell off?
- Whales selling off in a crypto market have drastic effects. So, liquidations are very bad for crypto, and a $3 billion liquidation happening due to a sell-off is incredibly bad for the crypto market. It can lead to a crypto crash. While Robinhood gets its $3 billion Bitcoin investment, the crypto community will hope they don’t sell off suddenly.
Conclusion
There are links and speculations that the anonymous third largest Bitcoin wallet belongs to Robinhood. However, there is no confirmation from this investment platform over the issue. Nevertheless, there are good and bad sides to this. One is that it shows the huge interest of large organizations in Bitcoin. However, the bad side is that selling off might contribute to a market crash.
