What if this guy with 96,651 BTC suddenly cashes out?

[o_e_l_e_o]

How many times do we have to debunk this stupid article before people will learn to use the search function.

The address belongs to the Huobi exchange (as can be seen here: https://www.walletexplorer.com/wallet/e8fb61953c163500?from_address=3Cbq7aT1tY), and it is simply one of their storage wallets.

[STT]

He will sell 96,651 Bitcoin.  100% true.

He no longer has to sell the coins in the wallet itself.  He can employ the services of a financial institution to sell futures contracts with the wallet as his security on this speculative bet.   Or at least this happens all the time with stocks, companies continue to hold the voting rights on the company stock but engage in the market to speculate on the price itself.

Miners have the vote not the wallet in this case but I think its possible this wallet contents are already engaged in a wider business or distribution but its not exactly apparently just by looking at the transactions.   Considering possible fees its far more efficient to move his interest about by promissory notes, just like happened years ago with other assets.   Obviously gold being the most obvious example of a heavy object rarely moved physically as its completely replaceable in another place and only the note of credit or debit needs to be applied to peoples balance.

Put simply this wallet could just be an exchange type balance, I expect someone already knows the answer to this.  

 Opps I see the guy above knows exactly, I was right     On the FLIP side people do fear large wallets like this can be seized by governments in unilateral moves against BTC, obviously not every country in the world is free or legally justified.

[Rabblerah112]

He would cause a nice dip that I would immediately buy into.

[First77]

Those are a lot of bitcoin for only one guy. How can he handle it? I hope he doesn't cash out because that would affect the bitcoin price

That's $900,000,000. He should sell Bitcoins and buy Gold and Silver or real estates. He will be a billionaire after 6 months.

[d3athgu1s3]

How many times do we have to debunk this stupid article before people will learn to use the search function.

The address belongs to the Huobi exchange (as can be seen here: https://www.walletexplorer.com/wallet/e8fb61953c163500?from_address=3Cbq7aT1tY), and it is simply one of their storage wallets.

Well, that just proof if Huobi decided to hit and run, he would be instantly be a billionaire.

[gareng1468]

that's a lot for me. maybe he sells only for investment business. and he will continue the funding for business in the real world.
the price of today's crypto is quite an ideal price for him. and not too greedy expecting to trade it even higher

[Cookies_N_Cream]

If the guy suddenly decided to sell his Bitcoin then there are advantages and disadvantages. Advantage is he'll gain more fiat of course which he can spend for his getaway or other luxuries in life then disadvantage is BTC value will go down. If it dips, then it'll give a chance to other investor to buy BTC more since dips for investors are an advantage to buy BTC during a dip. After that BTC's value will go up again, leaving the seller with less money since he doesn't have BTC anymore that profits in time unless he spend the money wisely.

[howlong358]

If this whale will sell his btc holdings, theirs nothing we can do about it. the price will lift down a little bit but btc still worth a thousands.

[mukuro04]

well if that happen the market for btc will go down. but in reality its hard to do that due to the cryptocurrency exchanger they always need gas. and it takes time for others to be approved especially on bigger amounts

[BTRIC]

It would be much more profitable to sell slowly, so the only scenario where someone would sell that much quickly is if they desperately needed cash right away, like if there a really amazing black friday sale and they wanted to buy 10,000 refrigerators.

Of course, if you bought 10,000 refrigerators, you'd need a house large enough to fit them all.  So they could build some sort of skyscraper mansion.  Oh, and not to mention the beer.  That's a lot of beer.

In a normally operating market, it makes sense to sell your positions into strength.  Flooding the market with a panic sell will absolutely crash the price, be it Bitcoin, bonds, or any other asset for that matter.  Supply goes up, demand remains fixed and actually is slightly falling due to the seller leaving the market, prices go down.  Then momentum trades kick in which causes further selling.

I've traded stocks and futures (not Bitcoin futures) on the long and short side.  I always preferred being long.

Best regards,
Ben

[Dexion]

If any of the big whales would suddenly cash out, Bitcoin's price could get quite a big hit. However, it is not in their interest to do it, since this way they would get far less cash than by selling slowly. On the other side, some super-whale could have the precise purpose to crash the prices so that he can buy the coins back cheaper. By the way, I guess this scenario has already occurred a number of times, perhaps even recently.

you say if the big whale stops, then the bitcoin price will hit big. I conclude from your writing that bitcoin is a manipulated value

means that large whales can control the value of bitcoin, does your perception justify that bitcoin is a value manipulation?
please give me an answer, is it true that bitcoin value can be manipulated by big whales or not?

[RodeoX]

That was not the point of my question.
The hypothetical question was intended as a way for me (who is trading stuff for the very first time ever in my life) to learn about how the market would actually react, and what drives a given % increase/decrease in value, etc.

The thing to always keep in mind is logic. Experienced traders do not risk their capitol to "crash the market". They act rationally and logically. With swings of $1000 per day there is absolutely no need to create volatility at great risk. It would be foolish to risk like that in this market. It is very easy money compared to stock, bond or commodity markets. Why introduce new risk?

A serious trader knows this is about percentages not the price of a bitcoin or how much you have. You could be trading $100 or $1,000,000.  You still make the same percentage.

[AltcoinAuthority]

If this whale will sell his btc holdings, theirs nothing we can do about it. the price will lift down a little bit but btc still worth a thousands.

There is nothing that we can do about it. That amount of Bitcoins is not much if he dumps it all in one day. The price will go back to normal in a month.

[PDNade]

He cannot sell it in 1 day it will take a months or weeks but If this big whale cash out that Bitcoin will go down not so down and if selling the total supply is not deacresing He sell it to people so People who buy it is The new holder.

[Dico88]

For me, If you want to spend the cash it will cause great vibrations through the crypto world. I also want to think if you already have a lot of bitcoin you can see how it can be used in the future and not just be crypto money for quick profit just like that.

[tuskacz]

Another BTC address found with 60k of bitcoins:

https://blockchain.info/address/1LAnF8h3qMGx3TSwNUHVneBZUEpwE4gu3D

[Zyborg]

He should not Sell all the bitcoin suddenly in this way he can earn return,but the rate of return would be smaller if he sell it in parts.Suppose if he sold all his BTC on 6th Feb-18 when BTC price was $5982,and today the price is around $11800 now imagine the profit difference.So its not advisable to sell all your BTC in one,sell it in part and when price is high,so that you may get higher return.

Another part of this if he suddenly cashes out his BTC,surely there will be overall effect on BTC price,price would slightly go down,but it would not be in long run,it would be for some days.Conclusion we can draw here is that no any big whale would do such stupid things that would crash the market.

[leopard2]

how do you know these are not exchange/corporate wallets?

[DistantFart]

one wallet could represent one million people and one person can represent a million wallets.

if we assume this is one person with all of the funds under their power then they would have a lot of liquidity issues if they wanted to sell all at once. for big traders it's a process of unrolling the line, which means unloading in chunks or gradually so that they don't rip the market down and get filled at terrible prices. for instance he could put all the funds on one exchange and hit the bid for all of it, but it would push the market down instantly to a lower and lower price, he may get filled $100 for his last btc; not a very elegant exit. big traders massage the market into their traps because they desperately need liquidity. big traders are working as many exchanges as they can at the same time for that exact reason. hell MM don't care what the price is.

they have very little incentive to hit the market with everything. the only situations i can think of is a fat finger or if bitcoin is fundamentally broken and no longer serves it's purpose.

[jhonnydeep87]

I think this number is much better than total revenue, so it will not have a significant effect on bitcoin prices. If you look at the amount of bitcoin space many exchanges we have. You'll notice that many bitcoins are sold every day, but they do not seem to be significantly affected.