Bitcoin has seen ups and downs in the recent past. The halving event of cryptocurrency took place for the third time on May 11. There is a sea of changes that may happen in the bitcoin and crypto industry. With the rewards declined from 12.5 bitcoins to 6.25 bitcoins, few miners left the bitcoin world as the coin takes some time to increase to a high value. The reports revealed that many bitcoin whales are still gathering the bitcoin as they see a future and whopping value for it.
Whales gather many bitcoins. The acquisition of the bitcoin in recent times is worth USD 108 million based on the market price that is currently available. There is a drop in bitcoin to USD 9,500. Many bitcoins are added to the bags whose cost would be around USD 108,000,000.
There is a rise in the bitcoin market in March, and many people started to invest in bitcoin. Many traders are buying bitcoins as they are available at a cost-effective price, which can surge rapidly after the halving event.
It is difficult to predict the market movements, but bitcoin whales have changed the prices earlier. The manipulation of the price would be based on the market price. The whales are responsible for not letting the bitcoin value to surge.
What are cryptocurrency whales?
The cryptocurrency whales are powerful investors who hold a lot of cryptocurrencies. There are a lot of speculations about the whales that these people would go into oblivion over time. However, in recent times, it is clear that there is an increase in the number of cryptocurrency whales who hold the wallet of more than 1 BTC. Due to the corona outbreak, there is a crash in the price. There is a steep drop in the price from March 12 to March 14. Many people took advantage of this situation and try to acquire more bitcoins at a low price.
The value of the cryptocurrency is based on the amount of US assets that an investor holds. Also, it is the percentage of cryptocurrency that is circulating. Many transactions are reported to be transacting hundreds of bitcoins whose worth is huge in US dollars. There is no point in tracking the transactions that are too low of its worth.
The cryptocurrencies would have a fixed supply, and the founders of the organizations would keep some cut in the bitcoins. Though the crypto is moved in huge amounts between the wallets, they would not be tracked in the APIs, since the value of the coins as per USD value would be very small.
However, the whale designation would be based on the actual value of BTC over its USD value. The bitcoin whale is known to be the one that holds more than 1000 BTC. The whales are also the individuals or companies that hold higher or smaller amounts of bitcoins.
The worst thing is that this whale can change the value of the coin to a whopping amount. When there is a steep rise in the bitcoin value, it would be for sure some influencers of bitcoin who increased its value.
Who is the biggest cryptocurrency whale in the crypto market?
The biggest cryptocurrency whale is known to be Satoshi Nakamoto. He is the one who has come up with the bitcoin in 2008 and holds 1 million BTC with him, which is referred to as Tulip trust. It is based out in the Netherlands and was started in the 17th century. The price of the tulips was whopping, and in no time, it declined in 1637. It is the first-ever speculative bubble. When you use the cryptocurrency such as Ethereum, it helps you to create decentralized programs. It is unbelievable that the Tulip trust would be a whopping of USD 7 billion, which is more than 10% of the bitcoin market cap.
Why are cryptocurrency whales important?
There are many reasons for giving importance to cryptocurrency whales. They would make a critical impact on the cryptocurrency in a short period. The whales are the ones who hold huge USD assets or the ones that are supplying a huge amount of cryptocurrencies. The cryptocurrencies like bitcoin and Ethereum would be securely distributed through the wallets. The market for these currencies is also great. These are liquid and not volatile compared to the other cryptos in the market.
The value of the bitcoin to rise or fall depends on whales. There are high chances of the bitcoin whales to come together and make a decision to sell the coins at the same moment. It would drop the value of the bitcoins. After selling, they would buy the coins at a low rate. With the amount that they got after selling the bitcoins, they purchase the coins at a low price again. It keeps on increasing their wealth.
Cryptocurrency whales are powerful investors in the trading world. They control the pricing of the bitcoins.