Bitcoin whales: Who are the most significant players in the cryptocurrency market?

Bitcoin price is subject to incredible volatility. During the day, it can rise by 30% and then fall by 20%. One of the things which can be a reason for BTC price rise is the owners of large amounts of Bitcoin. They are often called “Bitcoin Whales”. They can run the course at a peak, selling even a small fraction of their fortune.


Let’s study the question in more detail…

Who are the “Whales” and how are they related to cryptocurrencies?

The Bitcoin Whale is a holder of a large number of Bitcoins that can cause volatility in the market. It can be an early investor who bought a cryptocurrency at the first stage of its development, as well as “Bitcoin operators”, exchangers and cryptocurrency exchanges that regularly transfer hundreds, and thousands of Bitcoins to other services.

Can Bitcoin Whales control the BTC’s rate? What portion of Bitcoin assets belongs to Whales?

About 40% of all Bitcoins belong to a narrow circle – about 1000 users. This automatically makes them not only the richest but also the most influential Bitcoin holders. At current prices for the main cryptocurrency asset BTC, if each of these large players might want to sell at least 15% of their fortune – it could practically revolutionize the history of BTC.

Yes, that’s right, if they wish, the whales can coordinate deals or report joint plans to move the price of BTC to the “select circle”. It can even be assumed that many of the major Bitcoin owners have known each other for years and believed in cryptocurrencies in the early years of their formation when the overwhelming majority only ridiculed even the very “reality” of cryptocurrency money, let alone the opportunity to make a fortune on cryptocurrencies.

So yes, in theory, the whales could potentially agree to crash or lift the market. But we can only speculate, there is no direct evidence of this.

Once the Bloomberg team even asked Roger Ver (one of the early investors and large owners of Bitcoin) about the possibility of collusion.

His reply was next: “I suspect that this may be true. People should be free in how they manage their money. But I’ve never had time for such things.”

But there must be even small evidence that the biggest price movements in Bitcoin could be collusion:

Many market participants argue that tens of millions of dollars worth of Bitcoins can crash the market and increase its volatility. It is not surprising why many analysts are closely following the Bitcoin Whales, who can transfer huge amounts of assets from one address to another in no time.

There are even special platforms on the market that monitor transactions in various crypto networks. The most popular such platform is Whale Alert. Whale alert is the source for live tracking and analysis of millions of transactions every day.

whale-influence-BTC image

For example, during the most famous roller coasters and jumps in BTC prices, the Whale Alert service recorded hundreds of large transfers, for example, at the end of 2019, a payment of 10,000 BTC was tracked. Then the price rose sharply from 7K to 10.5K in less than a day, coincidence?

The fact that the Bitcoin blockchain is open and public is actually a good thing. This means that any market participant can get access to all data. The only problem is the correct interpretation of this data. Therefore, if you conduct market analysis and be an active player, you can earn money from the movements of whales yourself!

Whale Alert has also discovered a few surprises, such as a wallet with a balance of 80,000 BTC which has been inactive since 2011. Can you imagine what kind of profit you could get now, almost 10 years later if holding BTC since 2011? You can calculate the exact amount using special services, for example, Bitcoin сalculator.

Why assets that are worth such a sum have been inactive for so long? What happened? For example, access to a wallet could be lost and Bitcoins were “buried” in it. Or the user is waiting for the right moment, can you imagine if now he decides to make the sale of all 80,000 BTC? This will be an unbelievable incident on the market! On this topic, we can only have our own guesses.


Where do Bitcoin Whales live? Features of the trading environment

The lack of liquidity on large exchanges is the first of many obstacles that can arise when servicing large-scale transactions of large investors. Selling several hundred million dollars in BTC over a short period of time on an open platform can lead to a market crash, especially if there are not enough buy orders in the market to counterbalance large sell orders.

Thus, billionaire traders and institutional players rely on the OTC market to make large transactions in cryptocurrency. Or they prefer platforms with collective liquidity from different services and exchanges.

Also, do not overlook the fact that any large transaction can be split into many small ones, which will be executed faster in the market.

Cryptocurrency Trading: How to Make Money?

First, you need to decide on a reliable cryptocurrency exchange for storing, exchanging and trading cryptocurrencies. The platform needs to be user-friendly and easy to navigate. Next, select the asset (or assets) of which your cryptocurrency portfolio will consist of. Learn how to spot and read the movements of an asset on the chart. Devote some time to cryptocurrency analytics, figure out how certain types of trading orders work, etc.

The main thing is not to be afraid! The cryptocurrency market is so young, but has already reached such heights! Join it now, and you will have time to go from a crypto beginner to a crypto professional pretty quickly!

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