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tradeandholder

What are "whales" and how they affect bitcoin’s price?

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The word whale appeared in crypto and it marks a person who is very rich and can alter the market by trading crypto in great volumes. Due to the fact that the market cap of cryptocurrencies is relatively small when compared to different sectors, the actions that whales take can be a signal for other investors. The "whale" term is actually not new although it became popular worldwide recently. It was used for the first time for one of the traders who worked at J.P. Morgan to mark some of his investments and losses that were in billions.

 

The total market cap of all cryptos is currently aimed at $260 billion, which is not a lot. However, this gave way to several whales who can change the value of all digital assets a lot. Therefore, everyone who is either an active investor or plans to start investing or trading crypto should be introduced to the "whales of crypto" and follow their steps carefully.

 

 

Who are "The Whales" of Bitcoin?

The current whales who own millions of dollars in this cryptocurrency are people who were among the first to buy the bitcoin when it was cheap and completely new. But they are not the only ones, as many individuals who are already in the two-comma or even three-comma club joined and bought a lot of coins themselves.

 

The fact remains that only 1000 people in this world currently has 40% of all the bitcoin that currently exists. If we were to follow the analogy of the whales, it can be concluded that there are millions of little fish as well. One of the most famous examples how bitcoin can change its value from a whale can be seen in the actions of Nobuaki Kobayashi, a CEO of the former exchange platform Mt. Gox. At one point he sold as much as 36000 BTC and these transactions directly affected the price of bitcoin right away by lowering them.

 

 

Are there whales for altcoins?

Yes, there are. If you plan to invest in a smaller altcoin, it is always a good idea to see whether there are whales there. Also, take a look at the buying/selling activities of this altcoin as those coins, which have a market cap less than $100 million, are very likely to be heavily impacted by the activity of the whales.

 

 

How to monitor whale trading?

The first thing to do is to follow the wallet addresses of the big whales for a specific crypto and see if something changes. Also, you should follow their wallets on the big exchange sites and even read the news about them. The math is quite easy here - if you spot something that is not really the amount an ordinary trader would buy or sell, you might have caught a whale activity. Sadly, the whales have become much more aware that they can be tracked which resulted in them finding various different methods to trade undercover.

 

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