Bitcoin Whales Move Holdings, Cause Immense Market Disruption & Speculation – Coinpedia – Fintech & Cryptocurreny News Media

The term “whale” refers to a trader in the financial markets with a large amount of capital. Due to the large position size of a whale trader, these investors are able to influence the markets to move in both directions when placing large buy or sell orders.

Over the past 10 days, the Bitcoin network has witnessed suspicious activity from Bitcoin whales as they moved around 15,000 BTC. The most significant difference between regular coins and the amount moved is when they were last spent. Most of these coins belonged to investors who bought BTC in 2014.

Are the whales responsible for the drop in prices?

Technically speaking, a one-time injection of 15,000 BTC into the market could have caused a major drop in the first cryptocurrency and liquidity issues. However, despite the importance of the net amount, it could not be the only reason for the recent drop in the asset.


CoinGlass reported that the cryptocurrency market saw over $350 million in liquidations in the past 24 hours. Although the amount may seem huge and large, the gradual sale of 15,000 BTC in the market could not have led to such an increase in liquidations.

As reported recently, the whales transferred most of their old funds to the Kraken exchange and likely tried to sell them before the sharp price drop. However, most experts believe that the main reason for the correction has to do with the upcoming interest rate hike and the continued tightening of monetary policy.

Will BTC survive the crisis?

Bitcoin is consolidating at the July level and has yet to drop lower than that. It is clear that the current price level still corresponds to a strong level of psychological and historical support, which can help prevent the cryptocurrency from sinking.

The majority of sentiment indicators have returned to extreme fear. Bitcoin’s Relative Strength Index shows that the asset is already oversold. But, it may still drop even further if new macroeconomic factors weigh heavily on the crypto market.

To date, Bitcoin (BTC) is trading at 18,796, down almost 6% at the time of writing

How to follow the activities of whales?

The impact of whales is most felt in the Altcoin market. In crypto assets with market caps below $100 million, the market will move significantly if a “HODLer” decides to sell part of their portfolio or if a big buyer joins.

It is important to be aware of the wealth distribution of small Altcoins before investing in them. Also, you have to watch the order books closely to see if there are any whales.

In order to identify whales, the first thing you can do is to monitor the wallet addresses of the largest holders as well as exchange wallets to stay alert for any significant changes in the cryptocurrency.

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