How Strongly Do ‘Whales’ Influence Crypto Market?

October 12, 2018

In the world of Bitcoin mysterious ‘whales’, i.e. individuals who own huge volumes of digital currency, have long been the initiators of speculation and disturbance. Recent research, however, has shed the light onto the nature of whales and the impact they produce on the market.

The study conducted by crypto analytical company Chainalysis has considered 32 major whales who altogether own more than 1 million of about 17 million bitcoins mined for today. The smallest one holds around 12,000 bitcoins while the largest one has got over 85,000 bitcoins which is $75 million and $541 million respectively.

As the chart demonstrates, the firm has classified 32 whales in four categories including the three criminal ones who made their fortune several years ago when Bitcoin was better known as a currency for illegal Internet operations. Chainalysis suspects one of those being currently imprisoned.

Still, the most curious category for investors would be the nine trader-whales who entered Bitcoin market in 2017 and have been trading actively since.

Two other whale groups don’t have the marker reach trader whales do. Miners are persons who have gathered a lot of bitcoins in the time when mining was cheap and easy. The five lost wallets are those who collected many bitcoins first but died due to lack of activity or lost the keys. The Chainalysis investigation has proven that almost 4 million of bitcoins with total volume of $21 million have been los forever.

So what is the point? The role of whales on Bitcoin market can be overhyped drastically. The top-32 whales control about 6% of bitcoins and the figure drops down to 4.6% taking account of the forever-lost coins.

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