The post ‘Retail will provide our exit liquidity’ appeared on BitcoinEthereumNews.com.

Since Bitcoin (BTC) reached new all-time highs earlier this year, traders have wondered how far BTC can go. In this context, a Bitcoin trader revealed his exit strategy for the leading cryptocurrency, which involves selling to retail investors. The trader’s account goes by the alias Wolf (@IamCryptoWolf) on X and has recently shown skepticism over Bitcoin price predictions. In particular, Wolf has criticized PlanB‘s $500,000 per BTC forecast, which has been massively reproduced by influencers. According to the trader, retail investors will “FOMO” into Bitcoin as the price surpasses $130,000, following higher expectations ($500,000). Notably, this is when Wolf says he will start selling, using retail traders as exit liquidity to book profits. He deemed the $500,000 price target based on a “broken model,” referring to the “Stock to Flow model.” Interestingly, this model has failed multiple times in Bitcoin history, misleading traders to unreachable targets every cycle. For example, PlanB had predicted BTC to reach $200,000 and then $100,000 in 2021 following his model, which never happened. This is definitely not the time to take profits but to plan your exit strategy. We’ll start selling our holdings to retail investors once Bitcoin is north of $130k. Driven by FOMO and relying on broken models predicting $500k+, they will provide our exit liquidity. — Wolf 🐺 (@IamCryptoWolf) May 26, 2024 Retail Bitcoin traders are the exit liquidity in the ‘Greater Fool’ game As of this writing, Wolf‘s post had more than 460 likes and over 33,000 views, likely reaching what the market understands for retail traders. This raises the question of whether other Bitcoin whales could make this trader’s target their own exit strategy, following a similar logic. Curiously, the Greater Fool theory suggests that an asset’s price can rise if there are enough “fools” to buy it. These buyers…

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Filed under: News - @ May 28, 2024 8:12 pm