(Via ZEXPR) Back in 2008 when first Bitcoins made it to the world, it met with eye rolls and ridiculous remarks. No one was ready to believe that a coin with no virtual existence, that was being sold in less than a sent, would be the next big thing. As years went by and bitcoin was exploited, it drew the attention of masses who were ready to invest massive sums into the business. Large firms, businesses, and individuals noticed the growing popularity and rushed to buy these virtual coins in bulk. These coins were never bought with the aim to sell them in fact to HODL them; hold them till Indefinite time periods. Now this accumulation made them so relevant in the area that they were referred to as Whales. Whenever whales make a move, they cause a disturbance in waters where small fish reside.
All around the globe, these whales that hold at least 10k bitcoins are being watched carefully. To some extent, the surveillance is foolproof but fruitless. If you have a look at it from USD spectacles you see that they hold coins worth more than $565 according to prices today. As a result of such massive accumulation, their slight movements lead to unpredictable fluctuations in the prices. The Investment Center broker Zack Teller evaluates the details of this situation further by making characteristic assessments.
A very interesting twist lies in the fact that bitcoin is all about anonymity and this is perhaps a large reason behind the overwhelming opposition it had to face. You can keep moving your coins without letting the world know answers to questions like who, why, where, etc.
Since the beginning of the year 2021, these unknown yet impactful crypto transactions are on a rise. Finance Magnates reports that these whales are diving in and out not only in the oceans of Bitcoin but in those of Ethereum and Tether too.
According to an estimate, around 6.5 million unidentified addresses control bitcoins that have worth at least $100 billion. While a total of 43M users depend on coin base, largest US crypto exchange, to accumulate and HODL more than $100B worth bitcoins.
Zack Teller, the broker at The Investment Center, believes clearly that it’s been a long time now that Bitcoin Whales are manipulating the prices of bitcoins. He says that behind a rally in the prices and price drops are these holders. He further emphasized the need to closely monitor whale activities and design strategies that help them maximize profits.
Coindesk’s data on the other hand, also reported that only in the first two weeks of January 2021, there was an addition of 200 such Whale, unknown addresses. But in totality, the number of whales holding 10k at least is decreasing. On the 10th of this month, a drop to the month’s lowest value of whale was noticed. Figures indicated that less than 100 such addresses existed. This drop is accompanied by one seen in the exchange practices. Clear enough. But who’s behind the increased price then?
Unknown and Unidentified
Let us have a look into what exactly accounts for the recent 5% rise in Bitcoin. Whale alert (Whale-alert.io.) is a transaction tracker. They have reported via their Twitter account that this Tuesday, $2 Billion dollars worth of different cryptocurrencies were seen. In a period of less than an hour, 18,500+ bitcoins were transferred. This means that bitcoins worth around $1.2 billion were sent into some unknown wallets. Dozens of such transactions have been seen but the most distinguished ones were relocating 4953 bitcoins that equal around $266 mIllions. These were sent to an unknown wallet from another unrecognized wallet. Some others involved sending 3000 and 5486 bitcoins. These two roughly meant $161 million and $295 million respectively.
Such transactions are not new but can be regarded as rare since whale movements are very calculated and timely because of the large impacts that they leave. These days, crypto is the talk of the town and hence crypto assets are in huge demand. It is probably this reason that movements of large stacks by BTC whales are record-breaking.
The “Bullish Momentum”
Mr. Teller said that huge, anonymous BTC transactions are triggering the prevalent bullish momentum at the BTC market which has taken the Bitcoin to an immensely high value of $54,800. If Whales do not give up on accumulating more bitcoins, then the circulating supply will be limited. And this will pave the path for more ‘bullish rallies’.
It has been established over time that we cannot really figure out why some currency was transacted. But this doesn’t entirely rule out the possibility of internal exchange wallet transfers. It could also be the cryptocurrency exchange transferring and shuffling its assets. The movement of crypto to cold storage bores similar consequences.
Whatever the reason is, the upward rally has geared up the traders for a time where bitcoin will leave behind the $60,000 mark. Only time can tell how deep will the whales dive next and quantity the resulting turbulence.
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