Bitcoin Forum

Do you track bulk Bitcoin transactions being carried out by whales? Do you feel it has good impact on Bitcoin  prices and a regular trader can benefit from this data.

No!

Not really.
Technically when large amount of bitcoin is transferred on-chain, it has absolutely no effects on bitcoin price. However, where those coins are going and/or what the FUD says about it can have a considerable effect.
You see, we can't know if a coin is moving to an exchange or not for sure and even if we did we still wouldn't be able to say if it is going there to be sold or not to affect the price.
But if enough FUD comes out that can affect the weak hands into making an irrational move (panic buy or panic sell) it could affect the price.

Honestly I don't remember any cases that a silly news like this (usually coming from whalealert and garbage groups like that) had any significant effects on the market.

Tracking bitcoin transactions made by whales is like being the paparazzi and taking photos of celebrities leaving their private residence.

It's very rude, and indecent just for making a few extra bucks.

Arguably, whale transactions are even dumber to track since they are usually not even trades, so actually the people tracking them and make a trade based on that end up losing money.

Respect people's privacy and don't spy on others' transactions.

I did in the past bullrun since there were a few bots that were built exactly for that purpose.
During this time I became more and more interested in trading and read up on it and was often confronted with bots like this.
A well-known example would be the Whale Alert-Bot (https://whale-alert.io/).

Ofc, such sell and buy orders from whales can influence the market for a short time. I leave it to be seen whether this is necessarily a positive impact.  ::) ;)

Can a trader benefit from it?
Tbh, I don't believe in it, it actually didn't give me any advantage in my trading time that really gave me an edge. It sometimes drove me crazy when I was outside and received a notification and didn't have a short/long on at the time. Classic case of FOMO.
That was also the reason why I separated from it again.

No, I do not.
I do not track any transaction at all.

No. The only impact it has is on social media where they are posted with the intention of stoking interest from the readers and getting reposts to attract more audience. In truth the purpose of the transaction is unknown and that uncertainty will not change the sentiment of traders.

Even if it does have an effect, it will be small and short lasting.

What's the point to track that?

If there's a whale move the coins from unknown place (which might be a non custodial wallet) to centralized exchange, does it mean the whale will sell his coins? not really, he might use stake it in order to some %APY, who knows?

If there's a whale move the coins from CEX to non custodial wallet, does it mean the whale will hold his coins? maybe, but he has an option to send back to CEX and sell it, who knows?

I'll join what the above people said. You can't make money on this, it has no real repeatable impact on the price. Usually such a whale has an agreement with a large buyer or plans its sale so as not to move the price too much. The only thing that may affect the price is a massive FUD attack from the largest mass media portals (like cointelegraph), which will spam about such a transaction.

On Twitter, there are some accounts that do this, and you can activate notifications if you want to follow such updates, but you cannot use them to predict the price because most of these deals are done OTC and at a price that may be different from the spot market, but sometimes tracking withdrawal may give a warning that an exchange has a problem. Or it was hacked and this happened rarely, so trying to track it with simple tools like this would not be a smart idea.

Glassnode allows you to analyze the chain in more depth with some charts and analyzes that you may find useful, but it is a little expensive.

I do not exactly track them. But yes we need to keep an eye on them. They do really impact a lot in the price to be honest. When huge amount of Bitcoins are transacted, it creates movement in the market, so when you notice such, consider that as the good time to buy the coins. So at that time buy the coins and hold. Now when the price rises just sell it finally.

Why would I do that? For me, it's just a waste of time. There is no need to track someone sending his own money from one wallet to another for reasons I don't even know. It is like going to the bank to monitor how many customers withdrew large sums so that you can determine how healthy the bank is.  I have seen many posts in this forum and social media with news of people moving large funds and as much as I can remember they did not affect the market. These transactions could be exchanges moving funds to another wallet or it could be an individual moving funds to another more reliable wallet.

I am not a trader but I heard that the market can respond to even insignificant activities. So traders can check them out.

Relying on the decisions of whales is quite risky, although this method is quite popularized on the Internet, and even cases of successful transactions are described. However, this can be monitored, but followed completely without one’s own understanding that such trust can bring losses is completely thoughtless. As answered above, surveillance is tantamount to counting other people’s money, which is not entirely correct from a moral point of view.

OP asked about on chain transactions to move bitcoin from one wallet to new wallet. I guess OP did not ask about deals to trade bitcoin between traders and sellers. You provided a correct information that whales can do their trades through OTC market but it is not OP question.

When I did not have enough experience in cryptocurrency market, I felt cool, panic when I read news about big transactions from whales but nowadays, when I am more matured in this market, I no longer care about it.

If OP wants, like you said, OP can follows some Twitter accounts with notification for it like https://twitter.com/whale_alert

No it really its not actually important to follow since they cannot move the market if that's what you mean. Maybe try to focus on your trade or learn more from your own stats since this could bring you more good result than following those whales which doesn't give any contribution on your earnings. If they move some huge balances to other wallet it doesn't mean that bitcoin will dump, Although its crazy that sometimes manipulators use this but if you see how market react for sure you will find out that its really nothing.

Bitcoin market got huge volume if some of the try to sell or accumulate for sure it cannot affect anything so try to relax yourself if you are bit worried about their possible movement since they are just the same like us and the only advantage those guys have is they had a lot of money to spend on their trades.

It’s useless to track not only because their money won’t give benefits to you which is a waste of time but also the purpose of transfer is unknown so you will just paranoid most of the time. It’s watching someone’s wallet account and assuming by yourself what he will gonna do.

We are already passes the era when a single whale can give huge impact to the crypto market since crypto has much thicker liquidity now. Also there’s a lot of exchange transactions when they are moving their coins to different wallet.

There is no need to track the whales transactions because it is a waste of time since there is nothing to benefit from it but only to have irrelevant thoughts that wouldn't be helpful to your conclusion on bitcoin. Don't poke your nose into other person financial life by monitoring their transactions from one wallet to another.

Talking about the price, it wouldn't affect the price of bitcoin because this is done sometimes and nothing happens to the market only panic from news that can affect the price of bitcoin and it will be for a short period.

What's the point of tracking them? Even if it does make waves, it's already too late to get out of the way because they've got what they came for already and the majority can't do a thing or two about it but get out while the prices are going down quickly because everyone wants to move with the whale. I guess the only point of tracking them is to probably get some informed decision on what you should do next be it trading or investing in bitcoin.

I don't think it's unethical to track those transactions, considering that they're public and transparency is important, but, like a lot of people here, I don't do it myself. I don't want to dedicate time to it, but it's not just that. There are groups and accounts that do it for everyone, so it's not time-consuming to simply follow their updates, but I don't do that because I don't care about that.
I think those whale alert things are largely useless and meaningless, they don't impact the price and don't signify much because we often don't know the purpose of the transfer.

It is related since OP also asks about its effects on the price. Considering many "big players" do their trades away from centralized exchanges (OTC trades) you can say that it does not directly or significantly affect the price regardless of the size of the coins that were moved. That's because the price is mainly decided on centralized exchanges and when a whale trades elsewhere they don't really move that market.

Imagine if you contacted me on bitcointalk and sold me 1 million bitcoin and I sent you $35 billion wire transfer!! That won't affect the market at all. But imagine if you had sold 1 million bitcoin on the 4 top exchanges (Coinbase, Kraken, Bitfinex, Bitstamp). That would easily crash bitcoin to $20k levels.

The whale effect is often a setup built on a trap, and I never day trade based on whale movements. Because Bitcoin whales are notorious for bluffing. On cryptocurrency exchanges, buy and sell orders can be created at prices other than the spot price. Whales who want the price of Bitcoin to rise or fall can build a wall at the target price by entering a very heavy trade order on very high volume exchanges.

For example, placing a 500 BTC buy order at a price lower than the spot price could create a support point for Bitcoin. If the whale is really bluffing, it will cancel the order when the BTC price approaches the buy level. Because of the unregulated market, I prefer to trade based on technical and fundamental analysis.
We should watch the Whales and follow their trades, but we should not trade based on these trades alone. We should always make our investment and trading decisions after doing enough research and using technical and fundamental analysis methods.

The other thing is we don't know the different between a "whale" and a large institutional holder.
If it's not an exchange with a known address but rather some private equity fund that bought a bunch of BTC and is now moving it for some reason.
Using what @pooya87 said. If they are moving the coins from A to B in terms of just moving the coins to a different address in the fund it's going to do nothing to the price.
If they are moving the coins from A to B in terms of a private sale it's going to do nothing to the price.
If they are moving the coins from A to B in preparation of selling on a public exchnage it's going to do nothing to the price till the sell.
And so on.

I know someone sitting on 500BTC give or take from back in the day who just moved it to a new multisig address due to a bit of panic about not being able to find one of the 4 keys needed to sign (2 of 4)
Not a 'whale' but the move was mentioned about 2014 address coming alive for the 1st time in years.
Funny part it was not he moved the BCH and the other forks out in 2017 [which he has been living on] but nobody talked about that.

-Dave

What for? There's no benefit to know where they send their Bitcoin. We also have no capability to ensure where the whales send it. We only know they send the Bitcoin to new wallets. That's it, right?  :-\

Theoretically, if the whales only send it to new wallets and don't plan to sell the Bitcoin on the exchanges, there will be no effect to the current price of Bitcoin. As long as there is no significant increase on the circulating supply, there will be no much impact on the price. So, unless the whales dump it by selling big number of Bitcoin on exchanges, we shouldn't be too worried about it.

No I don't follow Bulk Bitcoin transactions being carried out by whales.  What I follow is news about the current event of Bitcoin.  The ETF applications and the market sentiment.  I do not think there is a need to follow this bulk transaction, it will be on the news if it somehow have impact on the market. 

If bulk BTC is being sold on the exchange then it will have an impact on the price, it is good for the people who are accumulating because this bulk sale can reduce the price of Bitcoin in the market but  devastating to trader that wanted to sell at a higher price.

Traders aren't making huge impact on the market because their deal is to make a fast trade and get rid of their bitcoin with profit.

Whale traders tend to create those "bart simpson patterns" where they buy to liquidate shorts, wait if the small fish will follow their move and sell everything crashing the price back down to where it came from. Then they wait a day or two and do it again. It's just to liquidate leverage and does nothing good to bitcoin.

I don't follow them and hope you won't try to be smarter than they are.

No, doesn't make sense to me to track those movements.

If there is some impact, I think it's going to be bad. If you are a newbie here and you see reports that X amount of bitcoin has been moved from wallet A to wallet b, what do you feel? Exactly, it might create FUD to them. And that's the main reason why I don't see the any benefits at all with this kind of X (Twitter) account who has notifications because it might create a wrong signal to the market. So for those newbies out there, it's better to just stay grounded and don't complicate things on your end by reading too much news here as 90% of it are not even verifiable by the authors themselves. Just learn how to read between the lines and don't overthink it.

No! Because it is not important for me either and it has no impact on the price. I'd rather monitor the news as it was more influential than seeing those bulk transactions that are usually from exchanges. Besides, what are we gonna do if we see this huge transfer? Nothing but just wait for what will happen next. In fact, they are not selling, they are just moving their funds to another wallet which means that we have nothing to worry. Better we track the movement of the price as it was useful when trading rather than these whale's transfers.

Looking at the many answers given by forum members, it is certain that everyone said no about tracking Bitcoin bulk transactions made.
After all, it was just a whale transaction that did not mean they would sell their Bitcoin holdings.
It was just a show-off transaction and a plan to disrupt the market with a million-dollar transaction.

The transaction also uses the Mixer Platform, so it will not be traceable who is behind the transaction.
If they really want to influence the market price by selling their Bitcoin holdings, it will only have a temporary impact and the bull market will still be bullish.

Whales only play games to catch fish that are given a lot of bait.

No, i don't, one does not have to consistently keep up with the track bedside it makes no impact on anything than you seing how they were being moved from one address to another, which invariably does not indicate that they were being sold or bought, another thing is to consider the stress and time in doing this, the best thing to do is to keep up with the normal tracking on the market price, check for more indicators and study the pattern on the price chart and derive your own conclusions.

What about the case when there is movement from an old Bitcoin address from 2010 or something in bulk?

I never do it, nor do I care what whales are doing. I hold my own fort.
I don't even read the news, or check the price of bitcoin. I take most of my information from a few very bitcoin-oriented channels, so no shitcoin pumping there and no comparing of bitcoin to something else, just pure bitcoin talk with some economics and politics. The rest I get from this forum. I don't even care about the short term price fluctuations. I use bitcoin to buy something from time to time, when I need stuff, mainly electronics, but I try to wait for a decent pump before I do it. Even if Saylor was to sell all his bitcoin today, I wouldn't do anything, just as I didn't do anything in 2020 when bitcoin crashed on covid news.

I think I follow an account on Twitter that posts updates about whales making bulky transactions. Sometimes they even add the duration of sleep on the account (if it’s worth looking at). Anyways, the impact of these transaction depend where they are going to. If the whale is selling, it’s definitely a downward impact, and if buying, it’s upwards. Note that the impact may not always be very significant because the condition of the market also matters on the impact.

I don't track such tx's, and i see no reason why people should do so, i believe it is only weak hands that are usually concerned about such movements and tx's. I admit that tx's of a large amount of BTC's creates fud most times, but it shouldn't really, because we don't know where or why such person is moving their coins, and it is their keys so they are free to do what they like.

I am not a 'regular trader', but i know they love to trade on the news, people make a lot out of tx's of large amounts of BTC and if the news manages to spread, it can cause fud and affect the price; but take note that such movements in price is only temporary and you should not make long term decisions on them.

If I saw 2009 and 2010 addresses going to coinbase wallet address or binance  time and time again in under 10 days it would interest me.

Logic would be someone got access to the early coins and what is he or she up to.

I don’t track the movements of whales because I don’t care what other people are doing with their funds. Not to mention anyone can make their coins look like they’re doing anything with them, so if you are reliant on this sort of thing you’re leaving yourself open to being manipulated. Just make your own decisions and do your best. Don’t follow others.

Long term holders like you do not need to worry about the whales action. But daily traders can be impacted by this to large extent.

Why should I mate? why do we need to tack those Bulk order ? for inspiration or for frustration that they have
what we cannot afford to. sorry but i find no reason for me tracking them instead what I do is finding my way to have my own transactions
 and of course the orders I can have for my own wallet.with those act I dont have to feel anything bad for not having Bulk orders.
and knowing that you also have your own Bulk Bitcoins mate  ;D that is also my point , your coin your tracking
same as OP , His coin His tracking that is what best for all of us.

Because the current value of all your holdings depend on those bulk transactions.

Definitely it's, any news related to Bitcoin even it's small might affect Bitcoin. Now the question, is there a lot people in this forum are actually traders? I see it's not since most people said they didn't follow or track bulk transactions.

If you ask "does bulk Bitcoin transactions affect Bitcoin price", you will get many "yes" answers.

I don't do that, let those accounts or profiles in Twitter(X) do that for us. It doesn't make sense that you follow them and then your decisions will based on them. That just gives you anxiety and can lead you to misleading information that shall affect your decisions.

Nope. It's based on demand but those transactions are part of the demand but that doesn't mean that all the demand runs on those bulk transactions. They're not the only demand and transactions that you should be wary of, honestly there's nothing be worried with. Just treat it as typical day when you see one.

Yeah, for sure keeping tabs on the big fish in Bitcoin can be important if you're actively trading.  The huge transactions they make can really move the market, so watching them is like getting insider info on where things might go next.  Since I'm not a trader though, I don't religiously track the whales or anything.  I just read about the big deals they do if it pops up in my news feed or whatever.  Its crazy the amount of Bitcoin some of these people/companies have and how much they can swing prices if they want to and  like I saw something the other day about one wallet transferring like $400 million in Bitcoin to another wallet.  Wild! But yeah, I don't obsess over it or anything, just kinda keep up with the highlights.

I mean there's always a movement of big accounts going on in Crypto. I do not track them, I personally like to track what the biggest companies and organizations in Crypto are doing.
For some reason, these big movements or transactions do not excite me. You should only keep track of the Minting or Burn of USDT/Stablecoins. That's actually what matters. :)

Some people like doing this, like those who are into trading and chart analysis, they believe that when a big whale moves his funds into an exchange then something is about to happen or maybe the whale knows or heard something that they don't know.

I don't see any needs for me to do this because it's a big stress monitoring my crypto portfolio and also monitoring the whales wallets, as crypto isn't something I do full time I have other things that are occupying my time, I just buy bitcoin and hold for long term profit.

If you are so into Bitcoin trading it can be good to keep track of such wallets because you will be able to stay ahead of the game, I believe that trading in the bull is better and more possible to win some market prediction.

But this group of whales that can move the price significantly also has diminished a lot. It really needs a monster wallet to create fear in the market or motivate traders to decide to get out for some time or so, but tracking whales to adjust my own investment decisions? No, definitely not, but I think these whale trackers on former Twitter are quite fun to watch sometimes. It really has no impact on my belief in Bitcoin, but seeing when a few thousand Bitcoin get moved that were dormant for a decade, I think it can be interesting.

No, I don't like to track any other transactions outside of my own. Why should we spend time monitoring whale transactions? But sometimes it seems a few Twitter Kols post whale movements alert. But for that, I don't feel there is much impact. Everyone has the right to move their funds accordingly since crypto is decentralised. Unless there is sell pressure in the market, you shouldn't react to whale fund movements. I admit that sometimes this kind of whale transaction becomes a reason for FUD, which sometimes increases sale pressure. But it doesn't happen most of the time.