- So-called “bitcoin whales” appear to have a considerable influence on the cryptocurrency market, according to a new report.
- At the same time, whales are a dying breed.
- The founder of crypto watchdog Whale Alert explains why.
It’s fair to say that bitcoin whales have a reputation for running the show when it comes to the crypto markets. Whether this is an accurate account of the role whales actually play within the ecosystem remains an open question.
With his eyes trained on every major transaction in the market, Whale Alert co-founder and CEO, Frank van Weert, analyzed how bitcoin’s price flux may actually connect to these large transfers.
He disclosed his findings in a new interview with SFOX.
How Whales Move the Bitcoin Market
Research suggests that large-scale traders have triggered sizeable shifts in the crypto market, at least on some occasions. | Source: TradingView
You don’t have to look far into the past to find evidence that these large-scale crypto traders are influencing the market.
Last month, the bitcoin price slid below $7,000, only to rally 60% to retake the $10,000 handle. While bitcoin’s predilection towards the volatile is well-documented, Whale Alert tracked several transactions that appeared related to the movement – giving credence to the notion of market manipulation.
Another instance occurring in 2018 between August 29th and September 6th witnessed one whale offload approximately $1 billion in BTC. Whale Alert caught the monolithic transaction heading from a wallet to a cryptocurrency exchange. Surely enough, a few days following the transfer, bitcoin exhibited a 15% drop, along with an increase to its 30-day rolling volatility.
A single whale offloaded around $1 billion worth of BTC in 2018. » Read Full Article «