In the world of finance, the phrase "whale" refers to a market participant who has enough purchasing or selling power to create a temporary spike or fall in the price of an asset. This phrase is also commonly used in the crypto sector. Since the launch of Bitcoin, crypto whales have been known to induce dramatic price swings. The "whale" behavior that potentially affects these prices has sparked investor interest.
The Impact of Bitcoin Whales
By Sidney C. | 07-11-2022
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In conclusion
Crypto whales can quickly shift the markets if they make large purchases or sales of cryptocurrency. If you're a crypto trader, crypto whales could be a valuable source of information regarding short-term price movement. But remember, crypto prices are highly volatile, and whale orders are just one of the indicators influencing them.
If you are a long-term Bitcoin investor, these short-term fluctuations shouldn’t cause you stress. Over the course of many years, the cryptocurrency's value will be primarily influenced by investor adoption, increase in daily usability, and the development of blockchain technology.
The Biggest Crypto Whales
It is impossible to tell with absolute certainty who owns which crypto wallets. But there are some publicly known whales that hold large amounts of Bitcoin:
●Satoshi Nakamoto, founder of Bitcoin
●Brian Armstrong, CEO of Coinbase
●Michael Saylor, founder of MicroStrategy
●Vitalik Buterin, founder of Ethereum
●Coinbase Exchange
●MicroStrategy
●El Salvador (the country)
A crypto whale is a single crypto wallet that holds a high amount of a particular cryptocurrency. For example, a Bitcoin whale is commonly defined as a wallet with 1,000 or more Bitcoins. Since cryptocurrencies use a publicly distributed ledger, we are able to determine which wallets own the majority of a certain cryptocurrency.
What Is a Bitcoin Whale?
Whales in Recent News
The most popular blockchain tracking Twitter account, What Alert, reported that a number of whales made big moves on October 27th. This amount accounted for a total of over $400 million.
The whales transferred their crypto assets from exchanges to their wallets, signaling that they planned to hold their investments for a long period.
Whale Monitoring
Cryptocurrency ownership has become less concentrated as crypto investing and usage grew in popularity. However, research suggests that a small group of investors still controls a sizable portion of the overall crypto supply.
In 2021, the National Bureau of Economic Research reported that just 10,000 investors hold 5 million Bitcoin (over 26% of its total supply). That’s why crypto whales are carefully monitored by crypto traders due to their high concentration of ownership. Traders are anticipating that buying and selling activities of whales will impact crypto prices.
Cryptocurrencies are purchased and traded on exchanges that use an auction structure similar to the stock market. So, if a crypto wallet purchases huge amounts, that whale's behavior may restrict the supply of crypto available for sale on the market, causing prices to rise. In contrast, a whale selling may increase supply, momentarily lowering crypto prices.
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