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What are bitcoin
whales and how to detect them?
Follow the trace of Bitcoin whales: track their tactics, from manipulation to
hunting stop orders, Explore their influence on the market to
navigate cryptocurrency trading.
What are bitcoin whales?
Bitcoin whales are people or organizations that own large shares of Bitcoin (BTC),
where they have the ability to influence the market through their trading tactics.
Demo :
The term "bitcoin whales"
is generally used to refer to the owner who owns a large stake Compared to
smaller participants, who are often referred to as "small fish" within the market.
A currency owner or group of currencies controlled by a single entity
can be a person or group Raise funds to make significant investments.
Their vast holdings were accumulated
through mining, primary investments and other methods
Bitcoin whales have access to large shares of bitcoin
giving them the ability to manipulate the market
by making large purchases or sales that lead to price fluctuations. The presence of
whales is often associated with extreme fluctuations in cryptocurrency.
How much does a certain cryptocurrency
holder make money a whale in the bitcoin world?
- A person or organization is considered a bitcoin whale if they own
- a large amount of bitcoin; However, no threshold has been set
- for this classification.
The widely recognized standard for a person to be considered
a whale in the bitcoin world stands at 1000 bitcoins.
This threshold is usually cited by cryptocurrency analysis companies such as
Glassnode, when identifying entities in the network (address groups)
that own at least 1,000 bitcoins.
Until March 2024 :
bitcoin ownership distribution is highly concentrated.
Only three bitcoin addresses carry between 100,000 and 1 million bitcoins
totaling 577,502 bitcoins. A total of 108 larger owners then own 2,437
765 Bitcoin, with individual holdings ranging from 10,000 to 100,000 Bitcoin.
Together :
- these 111 wealthiest
- addresses have about 15.34% of
- bitcoin's total supply.
Why bitcoin whales affect the market?
Whales have a great influence on market dynamics.
Their huge holdings give them the ability to influence bitcoin supply and demand
resulting in price fluctuations based on their business operations.
When whales increase their bitcoin inventory :
- prices usually rise
- while selling a portion of
- their property can lead to declines.
By owning large amounts of cryptocurrency, bitcoin whales can generate scarcity
pushing demand and value higher. Large transactions by whales
can significantly move bitcoin prices, guiding the actions of other traders.
These whales
often work in the public arena
where their wallets are tracked by the wider trading community.
As a result :
their trading decisions or expected
moves can ignite large price moves as traders follow them.
Some bitcoin whales prefer to trade via the meter to reduce their impact on prices
while others exploit exchanges to manipulate markets through
buying signal or selling in bulk.
What trading strategies do bitcoin whales use?
Cryptocurrency whales are distinct from ordinary investors because they
embrace a long-term view of the cryptocurrency market
They often use advanced investment tactics.
Market manipulation :
Every now and then :
the big bitcoin players participate in the blowing and drainage schemes
Which involves buying large quantities of bitcoin simultaneously to pay
its price for the rise and then selling it at a profit
leaving other investors with a loss.
In addition
they may start social media rumors to increase interest
and raise price to attract smaller investors to participate.
In the end :
bitcoin whales sell, leading to lower price and losses for small investors.
Accumulation :
Bitcoin whales can gradually accumulate bitcoin by making purchases calculated
at low prices or during market downturns.
Over time, they increase their bitcoin holdings by taking advantage of
the opportunities to buy large volumes of bitcoin at preferred prices.
Long-term retention :
By keeping bitcoin for a long time, bitcoin whales can protect themselves
from inflation or make profits from a potential long-term increase in bitcoin value.
Diversification :
In addition to bitcoin, some bitcoin whales diversify their investments in
other cryptocurrencies to distribute risk and make potential profits
from various areas in the cryptocurrency market.
Short and long fishing strategy
When bitcoin whales expect a price drop, they can use short-term strategies to
sell huge amounts of cryptocurrency, scaring smaller
investors and pushing the market further lower.
On the opposite side :
they can use long-term strategies by strategically acquiring bitcoin over time
generating a positive dynamic and encouraging smaller investors
to join the market, thereby pushing the price higher.
Catch Stop Loss :
Fishing for stop-loss orders includes deliberate manipulation of bitcoin price to
activate other traders' stop-loss orders; This allows bitcoin whales to
buy at discounted prices before the market bounces back.
How to Discover Bitcoin Whales
Bitcoin whales often move money secretly, using innovative methods to hide their
identity and how much money they have. However, the transparency of the block
chain and various whale alarm platforms make it possible to identify these whales.
However :
identifying them requires deep exploration of
the chain of blocks and careful monitoring, what is known as chain analysis.
Here are some ways to discover bitcoin
whales swimming somewhere near you.
Search for large transactions :
For valuable insights and informed investment decisions, traders and investors
can closely monitor their business The big bitcoin campaign
this process is referred to as "whale control."
Large transactions :
by bitcoin whales often cause sudden price drops or increases.
When a large amount of cryptocurrency is transferred, it is often because
bitcoin whales do transfers between portfolios or exchanges.
Bitcoin's general ledger can help access all Bitcoin whale operations
And determine the large quantities of bitcoin that are transported.
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