Bitcoin Whales on the Move, But it Doesn’t Matter: How to Outsmart the Big BTC Bag Buyers


One of the most common phenomena in the crypto market is that whales are the ones that crash the prices. But, according to the latest webinar by Chainalysis this might be not true, in fact, things are exactly the opposite.

The blockchain research firm in its latest presentation titled, “Who are Today’s Bitcoin and Bitcoin Cash Whales?,” talked about different kinds of whales such as “criminal whales”, “trading whales, and “early adopter whales.”

In the surprising claim by the firm, it has been revealed that “crypto whales,” individuals with over $56 million in Bitcoin, actually pose no risk to the price of Bitcoin. Talk about a whaleplash.

Whale Movement: Accumulation

Recently, Weiss Ratings, a financial research firm stated that about 150,000 BTC has been accumulated by Bitcoin whales in the last 60 days. The majority of these wallets belong to those who have been accumulating BTC for a long time.

According to Bitinfocharts, 13 whales have sold over 97k BTC while 7 whales sold about 26,500 BTC.

Exchanges like Bittrex, Bitstamp, Bitfinex, Binance, and Huobi are the five largest wallets that hold more than 100k BTC. In the past two months that is after Bitcoin hit its yearly low in mid-December, the exchange wallets added 2,879 BTC that makes their combined holding nearly 574k BTC.

Early Adopter Whales

To start with, Bitcoin Cash whales holds about 250 percent of the cryptocurrencies that Bitcoin whales hold. By definition, Chainalysis categories a Bitcoin whale if it holds 15,000 BTC while a Bitcoin Cash has to double that i.e. 30,000 BCH.

When it comes to early adopter holdings, it has dropped from 9 percent of Bitcoin to about 5 percent where inflation via mining is part of the reason for this. During the bull runs, some whales sold part of their holdings which according to the firm is a sign of a healthy and maturing crypto market.

Trading Whales

Trading whales, meanwhile, have the most positive effect among the different whale categories as they tend to have a stabilizing effect on the market.

According to Chainalysis research, these whales don’t possess any actual threat rather has a relatively low impact. If these whales decide to even sell their entire holdings, that would amount to about $4 billion which is not even 10 percent of the total market cap of Bitcoin.

Though this sell-off would have an impact but then bears as well as bulls both will be in play as trading bost gets activated which as per the firm would have a low net effect.

Buying back the Bitcoin cheaper is the usually the expectations of most trading whales in order to increase their holdings as crypto trader Moon Overlord stated:

“Bitcoin is NOT naturally going down. It is being pushed down via whales placing spoofy sell orders on exchanges to make noobs and risk managers sell to “buy back lower”. They are stealing your bags and will make you buy back at a higher price.”

Criminal Whales

These might be criminal whales but they pose the smallest risk to Bitcoin price, the reason being they don’t sell their BTC in the way that other whales do.

Not getting detected is the primary focus of these whales which makes it understandable why they moved onto the privacy coins over the last few years.

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