On Wednesday, Greyscale Capital added nearly 8,500 Litecoin to its crypto investment holdings. The investment firm spent the past week loading up on Litecoin.
During the past 7 days, they have purchased just over 15,000 Litecoins and in the last 30 days they have added an additional 15,000 to their holdings. Meanwhile, they have offloaded a large amount of other cryptocurrencies in the past 24 hours with 35 Bitcoin, 216 Ethereum and 4,714 Stellar Lumens sold from their crypto-asset portfolio.
As can be seen in the Greyscale holdings chart below, they are very bullish on Litecoin while also showing some slight doubts for the rest of the cryptocurrency market.
Image from Bybt.com
Related reading | Crypto Analyst: Buying Litecoin Now Is Like ‘2020 Ethereum’
While it’s never a good idea to scrutinize closely at whale-like holdings from investment firms or crypto wallet addresses making big strides, seeing a few massive purchases over the past month proves Greyscale’s confidence in Litecoin and its ability to continue to lead The way to the new. Blockchain technology.
Large investment firms do not make any light moves or without careful consideration of the market as a whole. With this purchase, Greyscale is showing cryptocurrency investors what they think of both the market at the moment and where they think the market is moving in the near future.
Cryptocurrency investors in general should be optimistic that Greyscale is making such a big move. But no one should be overly focused on Greyscale’s fiery sale of some of its other crypto assets. Big companies are always trying to manipulate the markets and catch lightning in a bottle. If they feel that they can make a quick profit on an increase in Litecoin, they will. The rest of the market will continue to move as the decentralized network does and will continue to reward those who keep their investments over the long term.
Why buy Greyscale Litecoin
There are many reasons why an investment company like Greyscale would buy a massive amount of Litecoin while at the same time getting rid of a lot of other crypto assets. Not only are they clearly bullish on Litecoin and its trend, but they may have been overly exposed to investments in other coins.
As the market for crypto assets and blockchain technology in general continues to change on an almost daily basis, Greyscale could certainly have recognized that it holds a lot of cryptocurrency. Then, in their efforts to mitigate the risk of having too many holdings in any one investment, they slowly liquidated the cryptocurrencies they weren’t optimistic about and those they felt they had surplus to.
Remember that Greyscale is one of the biggest players in cryptocurrency investing at the moment and you don’t want to risk losing a lot of money on any one investment. They still have billions of dollars in holdings each of BTC and ETH and multi-million dollar holdings in over a dozen other cryptocurrencies. Their purchase of Litecoin simply shows how optimistic they are about Litecoin and the future of that cryptocurrency.