The Correlation between Bitcoin Whales and Crypto Market Volatility is Strong
Is The Current Volatility Indicating That The Bitcoin Whales Are Dying?
After the crypto market was slightly starting to heat up again, a massive loss has been suffered by the market in a single week. Bitcoin was hovering above the levels of $7,500 USD and now it is on the mark of $6,400 USD and going down. The total drop has been of 19% in a single week with a decline of 10.15% in the last 24 hours. What does this mean?
The most conceivable explanation was that the market overreacted once more to the Goldman Sachs’ action of withdrawing intentions to launch a crypto desk platform. As you may know, the market generally reacts very negatively whenever something gets in the way of Bitcoin growing.
The founder of Morgan Creek Digital, Anthony Pompliano, argued that the reason why the Bitcoin ETF was not approved yet is because everybody just saw $100 million USD worth of Bitcoin to be dumped on the market in a timeframe of less than 10 minutes, which caused the price of the token to decline by the incredible number of 5%.
He states that while some people argue that volatility is the cause of the issues, other people are arguing that there is market manipulation and the sad truth is that no one knows for sure what is happening.
Last BTC Whales Cashing Out?
If you follow Bitcoin news for a while, you might have heard about the “whales”. They are big investors, possibly from when Bitcoin was still starting, that can dispose of some BTC and affect (and even manipulate) the market. Some people theorize that they are liquidating their assets and moving to more stable markets like real estate while others believe that they are using the market.
In any case, the co-founder and COO of BitcoinIRA, Chris Kline, believes that the whales might be big players but that their ability to influence the market will diminish because they do not have infinite assets, so they will lose influence every time that they liquidate their assets.
So, each time we see something like this happening, it looks like they are losing power. With fewer individuals and companies with the power of dumping large amounts of crypto, the market tends to be somewhat more stable in the future. In the long run, stability will come, or at least we can hope.