Bitcoin Forum

As the subject line mentioned, this study can be an eye opener for those, who often blames whales for the price dip of bitcoin. A recent study from blockchain analysis firm Chainalysis shows that whales are not responsible for price volatility of bitcoin. I too had the similar idea on it and I have asked one valid question many times in this forum but haven't received a proper reply till date. The question is,

"If I am a whale holding millions of bitcoins, why would I want the price to go down? It will directly impact my holding value and nothing else. What can be one good reason for me to want the price to go down??"

Answer the above question if you have a viable reply! Now get back to the main topic,

Chainanalysis analyzed the transaction history of the 32 largest bitcoin wallets not on exchanges as of August 2018 to develop a taxonomy of whales. They represent roughly one million bitcoins, or about $6.3 billion dollars. The data revealed four basic types of whales as below,

https://i.imgur.com/vrcqtWE.jpg

This categorization reveals only a third of the whales are active traders, who regularly conduct transactions with BTC on exchanges. The statement of chainanalysis says,

“a diverse group, and only about a third of them are active traders. And while these trading whales certainly have the capability of executing transactions large enough to move the market, they have, on net, traded against the herd, buying on price declines.”

Hope this study will clear your mind and misconceptions that you have about the whales!! If you have valid argument to make, I am all ears!

Study link: https://blog.chainalysis.com/reports/bitcoin-whales-oct

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Hello,

Thank you very much for this article ! It is one of the best subject/article I red since a few weeks.

I really wouldn't imagine this repartition of whale wallets, especially the criminal and furthermore the lost ones. People who know they lost there private khey with a value multiply by xxxx times for their wallet could become mad.

I'm also wondering how they could compile these informations, how to be sure that this or that wallet go to one or the other categories especially the two I mentionned. How to know that no movement could also just say a patient guy !

I am not an expert in observing the crypto price movement but with what you say, I can understand that the up and down movements in bitcoin prices are pure because of their polarity, and also because of market demand. so this has nothing to do with the pope as they think.

Makes sense to me. People with a lot of coin did not get there by selling coins.

Yes, that report makes some sense, specially the data part and graphs. I guess, Whales will keep the market stable for their own interest from now on.

The myth of whales manipulating the market can only start to be offered has a hypothesis when we see a major cryptocurrency drop while another major cryptocurrency soars, and without news to support the drastic movements of each. But by and large the crypto market moves as waves in the same current.