What Are Bitcoin Whales And Their Impacts On The Cryptocurrency Market?

What Are Bitcoin Whales And Their Impacts On The Cryptocurrency Market

Bitcoin whale is one of the slangs popular in the cryptocurrency community. Some other popular slangs of the cryptocurrency community are to the moon, paper hands, pump and dump and many more. Visit webpage to attain a deep analysis of bitcoin trading.

 Bitcoin whale is the utmost common and famous out of these slangs as whenever something terrible happens in the marketplace; bitcoin whales are accused of it. However, whether it is a bitcoin whale or any cryptocurrency whale, they retain enough digital currencies to govern the valuation of digital coins potentially. 

Key Takeaways!

  • Bitcoin whales can govern the market value of BTC. 
  • The top-notch bitcoin whales of all time are holding more than 5% of the entire BTC present in circulation. 
  • People usually draw an analogy of bitcoin whales with other potential digital asset holders having a magnificent power to manipulate the valuation of that asset. 
  • The bitcoin marketplace comprises a rumour that the leading bitcoin whale of all time is the inventor of this network. The actual name of the bitcoin network inventor is not known as he used an anonymous name Satoshi Nakamoto while publishing and listing bitcoin on the trading marketplace. Winklevoss twins acquired popularity from the Facebook case and also appears in the list of leading bitcoin whales. The Winkle Voss brothers are also the owner of a popular cryptocurrency exchange. 

I Am Acknowledging The Concept Of Bitcoin Whales!

Bitcoin whale is a term given to the magnificent BTC holders. Bitcoin gigantic holders are named whales because any movement from this individual in the marketplace disturbs the portfolio of other cryptocurrency investors just like an actual whale does with the smaller fish in an ocean. Only Bitcoin whales hold more than 80% of bitcoin units present in circulation. 

Bitcoin whales seem to accumulate BTCs in one central point, which can cause more significant problems in the cryptocurrency marketplace. Bitcoin whales enjoy capital gains and are unwilling to sell off magnificent amounts from their cryptocurrency assets. However, these actions are causing an increment in the volatility of the spot price of bitcoin. 

Bitcoin whales that are not moving their digital currency assets for a very long time are the primary reason behind the lessened liquidity of the bitcoin marketplace. Whether it is a commodity, stock or cryptocurrency, low liquidity has always caused fluctuations in the price point of bitcoin. So in case a bitcoin whale decides to get out of this entire game and sells the digital currency holding one can go, devoid of the liquidity and gigantic exchange size can lead to a slump in the spot price of BTC.

 As magnificent digital currency holders try to sell off their cryptocurrency assets in fragments for a continuous period, it can lead to distortion. Distortion can either skyrocket or slump the spot value of a digital currency. Whales were seen making the cryptocurrency market more appropriate for the trading fundamentals. Speculations performed by traders in this marketplace can change according to the actions of bitcoin whales.

Examples Of Bitcoin Whale!

As discussed above, three leading bitcoin whales are controlling more than 5% supply of bitcoin. A wild rumour is that Satoshi Nakamoto accounts as the most significant bitcoin whale of all time. However, Satoshi Nakamoto is not the actual name of the bitcoin inventor and whoever developed the prototype of bitcoin used this name to hide their actual identity. Here listed are some examples of bitcoin whales. 

Satoshi Nakamoto!

Satoshi Nakamoto, as mentioned earlier, is a famous bitcoin whale. The holding of this bitcoin whale is nearly 1 million BTC. And even if the creator of bitcoin sells off half of his BTC holding at the lowest phase of the market, he will appear on the list of the wealthiest persons in the world. 

Winklevoss Twins!    

Winklevoss Twins acquired popularity from Facebook as they discovered the whole idea of a social media platform like Facebook. These two brothers are now the second-largest bitcoin whale. The twins are speculated to be holding more than 100K BTCs. These twins are also founders of an extensive international cryptocurrency exchange named Gemini. In addition, Winklevoss Twins have invested in many companies providing cryptocurrency services. 

Tim Draper and Barry Silbert are correspondingly cryptocurrency whales.