Blockchain insights platform Chainalysis is revealing that large investors purchased tens of thousands of Bitcoin as the largest crypto asset by market cap tumbled below $40,000.

In the blockchain analysis firm’s latest market intelligence report, Chainalysis discloses that as some investors exited their positions at a loss, Bitcoin whales bought massive amounts of BTC at the height of the crypto correction.

“So last week was challenging for everyone in crypto and some investors incurred large losses. But the industry appears to be responding and most investors remain confident. For example, investor whales bought the dip, buying 77,000 Bitcoin last week.”

At the time of writing, Bitcoin is trading at $37,000, giving the whales’ huge purchase a value of around $2.85 billion.

Chainlysis adds that 1.2 million Bitcoin was sold at a loss of between 5% and 25%. Another 120,000 Bitcoin was sold at a loss of 25% or more. The blockchain analysis firm estimates that the majority of the selling came from short-term holders.

“For Bitcoin, at least $3.2 billion was lost last week. This is just for Bitcoin that was held for at least four weeks prior to being sent, a restriction that increases the certainty that these are real losses. Almost all of this $3.2 billion loss was incurred by Bitcoin held for between 4 and 13 weeks, suggesting that recent investors were major sellers.”

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The chief executive of crypto consulting firm Parallax Digital is predicting the massive expansion of the US dollar supply in the next ten years, which he says will ignite Bitcoin’s meteoric rise to $12.5 million.

In a new interview with Kitco NEWS, Robert Breedlove addresses the issue of Bitcoin’s volatility after the leading crypto asset plunged over 50% from its all-time high in a matter of days.

“Volatility is a natural function of price discovery and it tends to contract as market cap expands so that’s inversely proportionate to market cap. We’ve seen that pattern play out with Bitcoin that its volatility is actually contracting. As a store of value, it really comes down to how you define a store of value. So Bitcoin is an asset that’s monetizing in real-time… It’s competing for a $250 trillion marketplace, which is global store of value. So it’s very nascent relative to its total addressable market…

Historically, gold was the technology which best satisfied the store of value property… Bitcoin offers us something radically new. It’s a money premised on perfect information. If I hold one million Bitcoin, I have one million of 21 million of possible [BTC] forever. No one can change that again. So it’s perfect inelasticity of supply and that is the property that market actors seek in a store of value.”

As a global store of value, Breedlove predicts that Bitcoin’s price will rise in tandem with the explosion of US dollar supply. The catch, he says, is that the surging supply of US dollars will come at the expense of weaker fiat currencies.

“The expansion of the money supply is governed by a law. It’s called the law of accelerating issuance and depreciation. The more money you print, the more money you ultimately later have to print just to keep the system going. I do expect the expansion of US M2 (money supply) to double again probably in the next four years. And then I expect it to double again from there. We’ll be north of 100% US M2 expansion annually by the end of the decade…

I do expect a lot of the weaker international currencies to collapse into the dollar during this transition… I would expect US M2 to expand to be about of global M2 by the end of the decade. Global M2 itself will have expanded from $100 trillion due to this law of accelerating issuance and depreciation to about $1.25 quadrillion which is $1,250 trillion. In that time as well, I expect Bitcoin as essentially the ultimate irrepressible, non-counterparty insurance policy against central banks to appreciate in tandem… By that time, due to the expansion in the money supply, from $100 trillion US M2 to $1,250 trillion M2, Bitcoin will actually be nominally valued at $12.5 million US by the end of the decade.”

As for this cycle, the head of Parallax Digital adds that he expects BTC to surge over 750% before the leading crypto asset tops out.

“I have a model posted. It’s still published on Twitter three years ago that we called the next Bitcoin peak at $244,000. I modified that model after Covid because I also think that the inflationary pressures on the US dollar are going to become especially pronounced, roughly 18 months after the printing began, which just happens to fall right in line with the next Bitcoin price peak. I think we could break $300,000 in this market cycle… $307,000 to be exact, that’s our current model price.”

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Billionaire investor Carl Icahn is considering cryptocurrency in a “big way,” earmarking a potential $1.5 billion into alternative currency.

The billionaire investor hasn’t acquired any cryptocurrency yet, but he tells Bloomberg TV that he is analyzing the crypto market for opportunities.

“I’m looking at the whole business. I’m not looking at what to buy necessarily at this time. I’m just looking at the whole business, and how I might get involved with it.”

Icahn also believes crypto assets are “here to stay in one form or another” and that alternative currencies are becoming popular as a natural progression of economic inflation.

His opinion is a U-turn from his previous stance. In 2018, Icahn was a skeptic, calling cryptocurrency “ridiculous.”

Icahn joins a number of billionaires who have reversed their negative opinion of cryptocurrency, including Mark Cuban, Michael Saylor and Howard Marks.

He also warned that the future of crypto may eliminate a lot of the coins currently on the market.

“I don’t think there will be a lot of survivors out there trading today. I think there’s got to be some form of really feeling there’s safety and value there.”

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