On Wednesday, Greyscale Capital added nearly 8,500 Litecoin to its crypto investment holdings. The investment firm continued to spend the last week reloading Litecoin.
They bought just over 15,000 Litecoin in the past seven days and added another 15,000 to their inventory in the past 30 days. At the same time, they have dumped a large amount of other cryptocurrencies in the past 24 hours, with 35 Bitcoin, 216 Ethereum, and 4,714 Stellar Lumens being the largest movers sold from their portfolio of crypto assets.
As can be seen from the greyscale stocks chart below, they are very bullish on Litecoin, but they are also showing slight doubts for the rest of the crypto market.
Image from Bybt.com
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While it’s never a good idea to carefully examine whale-like holdings from investment firms or crypto wallet addresses that are making big moves, the sight of some massive purchases over the past month proves Greyscale’s confidence in Litecoin and their ability to keep going for new blockchain technology.
Large investment firms do not take steps lightly or without careful consideration of the market as a whole. With this purchase, Greyscale is showing crypto investors what they think of both the current market and where they think the market will move in the near future.
Crypto investors in general should be optimistic that Greyscale is taking such a big step. But nobody should focus too much on Greyscale’s distress sale of some of their other crypto assets. Big companies are always trying to manipulate the markets and trap lightning in a bottle. If they feel like they can make quick money on a surge in Litecoin, they will. The rest of the market will continue to move like a decentralized network, rewarding those who keep their investments long term.
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Why Greyscale would buy Litecoin
There are many reasons why an investment firm like Greyscale would buy a huge amount of Litecoin and dump many other cryptocurrency assets at the same time. Not only are they obviously optimistic about Litecoin and its direction, but they may have been overexposed with investments in other coins as well.
With the market for crypto assets and blockchain technology in general changing almost daily, Greyscale could certainly have recognized that they thought too much of certain cryptos. In an effort to mitigate the risk of too high a proportion of a single investment, they then slowly liquidated cryptocurrencies that they are not as optimistic about and that they believe have a surplus.
Remember, Greyscale is one of the biggest players in cryptocurrency investing right now and doesn’t want to risk losing a lot of money on a single investment. You still have billions in BTC, ETH, and multi-million dollar holdings in over ten other cryptocurrencies. Your purchase of Litecoin simply shows how optimistic you are about Litecoin and the future of that crypto.
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