Posted 2 years ago | by Ben Armstrong
Bitcoin Whales are Dying – New Report
According to a new report from Whale Alert, the so-called “Bitcoin Whales,” who may have an outsized influence on the Bitcoin market, have been on their way out. There are many pieces of evidence that these large-scale crypto traders have influenced the Bitcoin market in the past, but now, they might be less relevant.
In last month, the bitcoin price slid below $8,000 USD, only to rally massively a retake the $10,000 USD handle. These kinds of moves have inspired ideas of a hidden hand behind the Bitcoin market, and when Bitcoin made its record run in 2017, there could have been hidden forces at work.
Whale Alert, a group that tracks large holders of Bitcoin, thinks that:
“Whale transactions can have a profound effect on price in the market...Knowing where the current flows is a great way of predicting stuff.”
Of course, there is no way to know for sure why a wallet address is buying or selling tokens, but Whale Alets pays more attention to these transactions than most.
Big Moves in BTC
A Bloomberg article cites a year-old research report which concluded that a single whale was responsible for the 2017 bitcoin run. The report said that unbacked USDT, printed at will, had been used to push BTC whenever it fell below a certain threshold. This is a relatively unfounded theory, but it has circulated the crypto space for many years.
According to the analyst, USDT may have had a significant role within bitcoin’s 2019 rise. The amount of USDT issuances was tremendous during the early months of this year.
Frank, Whale Alert co-founder and CEO, said in an interview:
“A lot of people see those as a positive market development: they assume those USDT are going to be used to buy BTC. Now, I don’t know if that assumption is correct, but a lot of people reacted to that, I think—to the issuance of Tether.”
There May be Less Whales Around These Days
Whale Alert co-founder and CEO, Frank, who does not use his last name, doesn’t believe in Bitcoin whales can grow with space, it may disappear altogether. He said that the extinction of these leviathan hoarders was inevitable.
From Frank at Whale Alert:
“Bitcoin started with a few people. So the biggest chunk of the coins is going to be in the hands of the people who started it...Eventually, those people will have to sell their coins, and more people are interested—more people are buying—and so, eventually, the distribution of BTC is going to hopefully level out a bit more, and there’s going to be, hopefully, fewer whales.”
However, as the industry progresses and evolves, there is more and more that suggests that Bitcoin Whales are making the market move. Whale Alert is trying to develop, building a new analytics system to track the remaining cryptocurrency whales for as long as large holders remain relevant to the token markets.