“Whale” is a word used to describe investors with an enormous amount of cryptocurrency, especially those with enough money to affect the market.
Individuals or organizations with substantial crypto holdings are called whales. Due to their immense riches, whales may influence the market. Sell barriers reduce the price of a coin, enabling whales to make inexpensive purchases. Buy barriers compel investors to increase the cost of a currency owned by a whale.
Some people think of whales as the opposite of bitcoin “fish” or “minnows,” who have small amounts of cryptocurrencies and don’t have much of an effect on market prices.
Instead, whales are members of a select group of people and organizations that have enough bitcoin to influence its spot price.
When liquidity is low or volatility is high, they usually have an effect on the outside world.
Bitcoin whales frequently establish trends for BTC fish to follow in terms of speculating. This could lead to a cycle where the fundamentals of BTC are no longer the same as the fundamental drivers of cryptocurrency markets.
In many cases, no one knows the true identity of the Bitcoin whales.
Whales are big cryptocurrency owners, just like whales are much bigger than other cryptocurrency owners. According to BitInfoCharts, in May 2022, four bitcoin wallets had a combined 3.49 percent of all bitcoin in circulation, while the top 100 wallets held around 15.36 percent of all bitcoin.
A well-known meme coin, Dogecoin, is much more concentrated than Bitcoin. In May 2022, 15 addresses held more than 29.5 billion Dogecoin, accounting for nearly 52 percent of the total supply.
Investors and members of the crypto community regularly follow these huge accounts. When one of the top 100 wallets makes a transaction, the Whale Alert website and Twitter account tell the public about it as soon as it happens.
Because a large number of whales are using the exchange, whales are likely to start dumping.
Sam Bankman-Fried, Michael Saylor, and Brian Armstrong are a few of the well-known crypto holders that own substantial amounts of bitcoin.
Investors regularly monitor the activities of cryptocurrency whales. It’s not clear if they try to change prices on purpose, but the interest other people have in their assets could make prices go up or down.
The definition of a crypto-whales varies with every coin and is subjective. In general, whales own 10% or more of the available coins for a certain currency.
© 2022 Cryptopress. For informational purposes only, not offered as advice of any kind.