Bitcoin whales, which is a popular term for BTC’s largest holders, have always been the largest influencers on Bitcoin’s price. In fact, many analysts, experts, and even regular investors have been tracking what the whales are doing. Their actions were taken as an indication of what’s to come, and whenever a whale was about to sell BTC, a drop in price was soon to follow.
This has earned them a reputation of the market’s largest destabilizers, which did not make them especially popular in the crypto community. However, according to new data, it is more than possible that Bitcoin whales are actually working on keeping the market stable, instead of causing more chaos, as everyone was led to believe.
Bitcoin whales are keeping the market in check?
Earlier this year, in August, a new rumor appeared, claiming that a $2 billion whale was disrupting the market’s already fragile stability. Reports of BTC sales as high as 50,000 coins per month have caused a 15% drop in Bitcoin’s own value. Speculation regarding these sales followed, with whispers of shadowy deals dominating the discussion forums.
Bitcoin investors, large and small, felt threatened by these giant holders, with many of them believing that the entire crypto world could collapse on their smallest whim. In order to determine whether these fears were justified or not, an intensive analysis was conducted. The analysis has targeted 32 largest known whales, with attempts to find connections between them or at least patterns in their behavior.
However, the results of the analysis were rather unexpected. According to data, Bitcoin whales are a very diverse group. Only one-third of them are active in the field of trading. Of course, while their trading habits have the potential to move the market due to the sheer size of transactions, it would appear that these large transactions were made in order to favor the market, instead of disrupting it.
On several occasions, whales have traded against the herd. They bought coins when their prices started dropping. This has caused shifts in the market, as expected, but most of such shifts were actually positive. Naturally, this kind of behavior is nothing but logical. Whales are professional traders, and they understand their power, as well as how to use it to improve the market in the best way possible. In a way, we could say that the question of their trustworthiness was the biggest issue.
Four types of Bitcoin whales
After conducting the analysis of 32 largest whales, experts have divided them into four groups, according to collected data. These whales represent around 1 million BTC ($6.3 billion). The four types are as follows:
Traders engage with various exchanges on regular basis. They are mostly buying and selling Bitcoin, and it was reported that there are around nine largest wallets, which control more than 332,000 BTC ($2 billion). While these whales make only one-third of all the whales’ holdings, they are still the largest of four groups. Additionally, it should be noted that the most Traders among the whales entered the market last year.
2) Early adopters and miners
The second largest group includes those who came to the crypto market early on, before the boom in 2017. It is estimated that this group includes around 15 investors, that also hold around $2 billion in total or 332,000 BTC. This group rarely trades, and many of them have sold a lot of their coins when Bitcoin’s price surged in 2016 and 2017.
The third group is made out of wallets that have spent years undisturbed. It is estimated that there are around five such wallets, that are holding more than 212,000 BTC, or $1.3 billion. The owners of these wallets have either lost their private keys and now the wallets can’t be accessed — or they simply do not use them in any way. Most of these wallets have been completely dormant since 2011.
Unfortunately, there is also a group of Bitcoin whales that are considered to be connected to criminal activities. These include three very wealthy wallets, with around 125,000 BTC ($790 million) stored in them. Two whales from this group are confirmed to be connected with the darknet market (Silk Road), while the third one is suspected of having connections to money laundering operations.
With so many whales around, it would not be unreasonable to assume that they are the ones causing the trouble in the crypto market. Wile only one group is actively selling and buying BTC, whales are still seemingly quite innocent when it comes to causing volatility. Instead, they are only trading small amounts, they are buying coins when the prices start to drop, and they actually seem to be taking care of the entire market by doing this.
For the global insights every crypto trader must have, apply for Elite membership!
Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.
Image courtesy of Pexels
Bitcoin Surges After Tesla Bought $1.5 Billion Worth of BTC
The sudden rise of Bitcoin has been connected to the decision taken by the Tesla electric car company to buy $1.5 billion worth of Bitcoin.
The company explained in a filing with the Securities and Exchange Commission (SEC) that it bought Bitcoin to diversify its cash returns and more flexibility.
Musk’s Tweets also impacted Dogecoin’s price
Tesla also added that it will start accepting Bitcoin payments for all its products, although this will be based on a limited basis and applicable laws. If the company concludes and starts accepting cryptocurrency, it will make it the first major car manufacturer to accept Bitcoin payments. The company’s founder and Chief Executive Officer Elon Musk has developed an interest in Bitcoin and cryptocurrencies.
He has been tweeting severally about the viability of the Dogecoin (DOGE), which doesn’t have an important market value attached to it.
ur welcome pic.twitter.com/e2KF57KLxb
— Elon Musk (@elonmusk) February 4, 2021
Few hours after endorsing Dogecoin, the cryptocurrency rose by an impressive 50%. But regulatory authorities are still concerned about the risks in cryptocurrency investments, with several regulatory bodies warning traders and investors they could lose all their money from crypto investments.
But for Tesla, the company decides to diversify its funds and increased its cash returns. However, Tesla also warned investors about the volatility of Bitcoin’s price in its SEC filing. According to the SEC…
XNO Token of Xeno NFT Hub listed on Bithumb Korea Exchange
Hong Kong, Hong Kong, 25th January, 2021, // ChainWire //
Xeno Holdings Limited (xno.live ), a blockchain solutions company based in Hong Kong, has announced the listing of its ecosystem utility token XNO on the ‘Bithumb Korea’ cryptocurrency exchange on January 21st 2021.
Xeno NFT Hub (market.xno.live ), developed by Xeno Holdings, enables easy minting of digital items into NFTs while also providing a marketplace where anyone can securely trade NFTs.
The Xeno NFT Hub project team includes former members of the technology project Yosemite X based in San Francisco and professionals such as Gabby Dizon who is a games industry expert and NFT space influencer based in Southeast Asia.
NFT(Non-Fungible Token) technology has recently gained huge focus in the blockchain arena and beyond, making waves in the online gaming sector, the art world, and the digital copyrights industry in recent years. The strongest feature of NFTs is that “NFTs are unique digital assets that cannot be replaced or forged”. Unlike fungible tokens such as Bitcoin or Ether, NFTs are not interchangeable for other tokens of the same type but instead each NFT has a unique value and specific information that cannot be replaced. This fact makes NFTs the perfect solution to record and prove ownership of digital and real-world items like works of art, game items, limited-edition collectibles, and more.
NFTs are already being actively traded in markets globally. For…
Wisebitcoin Launches Professional-Grade Crypto Exchange
Infrastructure is developing rapidly in the cryptocurrency industry, but the recent launch of the Wisebitcoin cryptocurrency exchange is nonetheless significant in terms of the immediate value it provides to cryptocurrency users. That’s because the exchange has had a beta version available since 2018 while continuing further developments in stealth mode, and already serves over 1.2 million end users with $6+ billion in 24 hour trading volume at the time of its official launch.
In addition to the large user base and deep liquidity, Wisebitcoin also stands out by offering up to 100x leverage to margin traders, with the ability to open a long or short position in their futures market. In the current bullish environment, leverage is a key way that experienced traders increase their exposure and try to profit from volatility.
For example, if a user opened a long position on ETH on January 2nd at a price of $750, they could have greatly multiplied their profits with even a small amount of leverage such as 5x as ETH reached over $1,100 within 48 hours. A simple unleveraged position would have netted $350 in profit, but a 5x position would have netted $1,750 and a 100x leveraged position would have netted an incredible $35,000 in profits from an initial investment of just $750.
Beyond leverage, Wisebitcoin additionally offers a simple and…