“Bitcoin Whale” is a term used to describe Bitcoin investors who have a strong influence on the cryptocurrency exchange. The crypto money exchange is compared to the ocean. The largest fish of this ocean is the ‘Bitcoin Whales’, who have a fairly large amount of Bitcoin. Like the huge ocean waves created by whales, Bitcoin Whales also affect the price fluctuation activities in the market with their high amount of cryptocurrencies. They are known to have 40% of the market. Bitcoin whales, known to have at least 1000 BTC in assets, are market-leading users.x
Bitcoin Whales: How do whales impact cryptocurrency’s price?
The number of users with more than 1000 bitcoins is at 2334, the highest level so far, according to CoinDesk. Bitcoin Whales can also cause price rises and falls in the market, referred to as “pump and dump”. Since a fluctuation in the market cannot change the direction of whales, whales aim to increase their own profitability by directing these waves. Although it is not known what their strategies are, the movements of whales can be detected by various methods. While checking the order book to keep track of a whale’s movements, gigantic positions can be looked at.
How to Detect Bitcoin Whales’ Purchases?
Looking at the effects of Bitcoin whales on cryptocurrencies; Heavy losses are likely to occur when trades are traded without tracking whales. The order book should be checked to see if there is a different increase in offer size than normal. An encounter with a larger than average buy means that a Bitcoin whale wants to enter the market. If there is a sudden volatility and price increase during the period in which the coin moves in the fixed price range; the presence of whales should be suspected. In normal time, the purchase and sale volumes are divided equally, but in the case of Bitcoin whales, the rate of buyers can increase up to 90%.
How to Know What Bitcoin Whales Are Selling?
If large purchase orders are instantly canceled; There is a decrease in the value of the relevant cryptocurrency. If a large sale is observed in the order book, the behavior of players in other markets may also be affected and a large decrease in the value of the cryptocurrency can be seen. It is possible to understand that Bitcoin Whales are selling by looking at whether there are strong fluctuations in the price of crypto money in a short time. There can be many reasons for price fluctuations, one of which is whales.
