Introduction Have you ever heard of encrypted whales? They are fascinating holders, especially when it comes to Bitcoin whales. But what exactly are Bitcoin whales? Well, they are users who own a large amount of Bitcoin, like individuals and investment institutions. To be considered a whale, you need to have at least 1,000 BTC or its equivalent in U.S. dollars.
Why Are Bitcoin Whales Important? Bitcoin whales have a significant impact on the market. When they buy or sell Bitcoin, it can influence other investors to follow suit. This can cause short-term market fluctuations. That's why it's crucial to pay attention to the behavior of these cryptocurrency whales.
Who Are the Bitcoin Whales? It's not easy to know the exact identity of Bitcoin whales because it's a private and ever-changing topic. However, based on public data and reports, some entities and organizations considered to be Bitcoin whales include:
Grayscale Bitcoin Trust They hold approximately 654,885 bitcoins.
Top centralized exchanges (CEXs) These exchanges hold about 2,500,000 bitcoins.
U.S. government The U.S. government holds about 164,004 bitcoins, mainly from confiscated black market and hacker activities.
Block.one They hold about 164,000 bitcoins.
MicroStrategy MicroStrategy holds about 152,333 bitcoins.
MTGOXK.K. They hold about 141,686 bitcoins.
Marathon Digital Holdings They hold approximately 12,964 bitcoins.
Tesla Tesla holds about 10,800 bitcoins.
Remember, these estimates are based on public data and reports, and the numbers may change over time due to market fluctuations and holder behavior. The Bitcoin market is highly volatile, and its price can be influenced by various factors like market sentiment, global economic conditions, and regulatory policies.
Bitcoin Whale Dynamics According to Glassnode data, the number of Bitcoin whales reached its peak of about 2,500 in February 2021. Since then, it has been on a downward trend. However, there was a rebound in the number of giant whales from February to March 2022. On February 19, 2023, there were only 2,027 wallet addresses holding more than 1,000 bitcoins, the lowest point in recent times.
The total balance of whale entities has also been decreasing. In early 2021, whale entities accounted for 63% of the total Bitcoin supply. But this year, it has dropped to 46%. In May 2022, the total balance held by Bitcoin whale addresses decreased by about 255,000 bitcoins, the largest monthly drop in history, reaching 148,000 bitcoins.
These changes suggest that the distribution of Bitcoin is shifting, with fewer whale entities and lower total balances. Many traders see this as a bearish signal, indicating a potential price drop. However, for smaller investors, it could mean new opportunities.
Bitcoin Holder Sentiment Recently, the net position of Bitcoin holders has been decreasing. This indicator measures whether investors are increasing or decreasing their Bitcoin positions. According to Glassnode data, the indicator hit a one-month low of 17,604.723. This suggests that more holders have been closing their Bitcoin positions to take profits rather than opening new positions. It also indicates that giant whales have been making moves and then returning to a wait-and-see state.
On a broader scale, people may be worried about a global recession, which makes investors less inclined to take risks in the market. Additionally, the approval of Bit Spot ETF is uncertain, leading to a lack of confidence in the market. There is also some pessimism regarding cryptocurrency regulations.
Bitcoin Futures Market The Bitcoin futures market is an essential part of trading. It involves financial agreements between two parties without the actual exchange of BTC. However, the trading volumes associated with Bitcoin futures have been declining over the past seven months.
The latest data shows that BTC futures trading volume has fallen to its lowest level since December 2022, averaging below $7 billion per day. This suggests that traders are either hesitant to take further action at current price levels or have shifted their focus to other markets with more volatility and potential for major changes.
In conclusion, Bitcoin whales play a crucial role in the cryptocurrency market. Their actions can influence other investors and impact the price of Bitcoin. Understanding their behavior and market dynamics can help traders make informed decisions. However, it's important to remember that the market is highly volatile, and various factors can affect its performance.
Whales don't matter. One of the fundamental aspects of bitcoin is that you can't vote, can't provide network security by staking, can't collude, and wether you have 1000 BTC, or 0 BTC, you have the same amount of influence within the protocol. What whales will ultimately have to decide is 1) wether they distribute their coins to others in order to capture economic expansion (which benefits those who hold the coins next), or 2) if they hodl their coins, benefitting everyone hodling coins. The time preference incentives are not something we've ever seen. That's a question I ask every bitcoin critic: what incentives does fiat produce, and what incentives does bitcoin produce?
reply