The cryptocurrency ecosystem is well known for its volatility and fluctuation in coin prices. One of the major factors that contribute to the unpredictability of the market is manipulation by cryptocurrency whales. The ‘whales’ of a digital currency’s network are often those investors who make a difference in the market when they trade in massive volumes of a particular virtual currency, eventually affecting the price valuation of the coin.
Over the past couple of months, Bitcoin whales made a significant impact on the market, according to data collected from bitinfocharts.com.
From 17 December 2018 to February 26, 2019, the five largest wallets, all owned by exchanges, increased by 2,879 BTC [$10.8 million]. However, the remainder of the top-100 whales [some of which are smaller exchanges] managed to accumulate 151,405 BTC [$572 million] in less than two months. Holders who have 100-1,000 BTC [14,749 addresses] gave up a lot of coins to the whales as their wallet size fell from 72.13 percent to 62.08 percent.
The BTC holders in between the range of 1,000-10,000 saw a significant number of Bitcoins in circulation as their traded volume constituted some 40.89% of the total number of coins in circulation.
According to Bitinfocharts.com, only one of the top-30 addresses, a Bitfinex cold wallet, witnessed a decrease in the volume of Bitcoins owned.
This information suggests that Bitcoin is more assertive in terms of buying power rather than selling power.
This is a view held by Eric Stone, Head of Data Science at Flipside Crypto, who recently stated that Bitcoin whales were more active than they were in the final quarter of 2018, when the whales were losing some of their authority in the market. However, over the past three months, whales have been involved in bringing in more active coins than before.
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Biraajmaan is an engineering graduate who is exploring the ever-changing crypto verse while traversing his passion for cryptocurrency news writing. He is a Chelsea fan and a part-time poet and does not hold any value in cryptocurrencies yet.