Why do whales move Bitcoin around from wallet to wallet?

[Pipdips]

I read this today and it made me wonder what exactly is the purpose of whales moving Bitcoin around like this?

https://www.fxstreet.com/cryptocurrencies/news/bitcoin-whales-move-3-billion-in-just-six-hours-201907302301?utm_source=tradingview&utm_medium=rss&utm_campaign=254b9d70-7c4b-481b-a94e-aaac0c60ed14

Are they splitting the coin up into smaller wallets so they do not keep all their eggs in one basket?  Any other reasons why?

[mr.relax]

To move coins means to use BTC for to pay something.
Maybe to reorganize also keys, g.e. an exchange has a new ceo,
so the cold wallet keys have to be different ones than before.

[Slow death]

So now people control transactions from those who have a lot of bitcoins? do these people who have many bitcoins have no right to do whatever they want with their bitcoins? should they be saying what they will do with their own bitcoins? then comes to say that governments are controlling and we have to break free of government control, but keep monitoring and tell what people who have a lot of bitcoins should or should not do with their bitcoins

[NeuroticFish]

Are they splitting the coin up into smaller wallets so they do not keep all their eggs in one basket?  Any other reasons why?

Many of those whales are probably businesses. Reasons for moving? Can be a few:
- consolidating the inputs
- move some big funds to cold wallet
- move funds out of cold wallet because of some withdrawals (move part to another address in the cold wallet, another part to withdrawal and another part to the hot wallet)

[mr.relax]

@slow death:
Who controls something?
With BTC you are free to move your coins how you want. There is no goverment control.
Your posting reads like a conspiracy theory

[NeuroticFish]

I think that you should read "check" or "monitor" instead of "control". I think that it was just bad wording. But yeah, let's see what he wanted to say.

[asajapheth]

If I were a whale I'd do the same. For security reasons, for easy accessibility and much more. The wallets are like banks to them. I have quite a number of bank accounts, and I'm not very rich. So, I'd definitely have many wallets if I had the coins.

[Pipdips]

Many of those whales are probably businesses. Reasons for moving? Can be a few:
- consolidating the inputs
- move some big funds to cold wallet
- move funds out of cold wallet because of some withdrawals (move part to another address in the cold wallet, another part to withdrawal and another part to the hot wallet)

What business was it?  They are totally anonymous?

What is the meaning of "consolidating the inputs"?

[Moshaid]

Like you said they're whales, whales can't stay at point they move to different location at different time looking for other whales or small fishes to prey on. There transactions are mainly to earn more bitcoin for themselves for a short period of time then they move to another place to do same thing. This is also among the factor of that affects the market.

[milewilda]

-Moving to cold storage
-Partitioning his coins into several wallets rather than on single one

If im a whale i would definitely do the same.

[Pipdips]

Did the whale remove coin from exchanges? Can we identify is it was in an exchange or a wallet from the transaction information?

I can see if they had $100MM sitting in a exchange and then removed it, that would make a big impact on an exchange.

[mr.relax]

What business was it?  They are totally anonymous?

Do you understand how BTC transactions function?
BTC is anonymous.
Your IP not and your Addresses known to exchanges where you did KYC are not.
What for is the money? THIS is not in the blockchain...

What is the meaning of "consolidating the inputs"?

Consolidating inputs means,
you send a lot of small incoming funds that reside in many addresses in a low fee transaction to one address.
And you have patience until it confirms.
So you save a lot of fees compared to sending them in normal transactions.

All Big Exchange wallets are known. If you have the right tools you may see if it came from/go to an exchange.

[Pipdips]

If I were a whale I'd do the same. For security reasons, for easy accessibility and much more.

I agree, If I had a million dollars worth of Bitcoin, I would break it down into separate wallets of probably $50,000 each.

But what is "and much more".  What are all of the other reason they move and split the coin down?  I ask because there are pros and cons to moving their coin around like that.

[sunsilk]

Did the whale remove coin from exchanges?

Possibly. Moving their coins out of exchanges or just simply transferring it to their another wallet.

-Moving to cold storage
-Partitioning his coins into several wallets rather than on single one

If im a whale i would definitely do the same.

Yap maybe om do the same thing, I think that is a natural thing so this is actually not a serious problem.

Yeah, if I'm a whale too I'd do the same. Splitting up the coin to different wallets that I own. Probably to electrum and hardware wallet that I own just to make sure that my funds are well placed. It's much better to see it split than seeing it on one basket.

[Pipdips]

Possibly. Moving their coins out of exchanges or just simply transferring it to their another wallet.

That is why I am so curious. Crypto Whales are insiders on what will happen next. If they moved their funds out of exchanges like Binance or Coinbase, I would interested to know. Also I wonder if the whale who did these big transfer is based out of the USA, or perhaps there location just does not even matter.

It's not like they are moving a few hundred bucks around the place. They are moving around more money to buy a small country.....

[The Sceptical Chymist]

If I were a whale I'd do the same. For security reasons, for easy accessibility and much more. The wallets are like banks to them. I have quite a number of bank accounts, and I'm not very rich. So, I'd definitely have many wallets if I had the coins.

I can understand that completely.  If I owned a large amount of bitcoin (never going to happen), there's no way in hell I'd keep it all in one wallet, even if it were in cold storage.  In fact I'd probably keep multiple paper wallets or their equivalents locked up somewhere--so it makes sense to me that these so-called whales just move their bitcoin around.

They are moving around more money to buy a small country.....

Makes me wonder who these people are, though I'm sure we'll never know unless they disclose their identity--and they'd be silly to do so.

[Pipdips]

Makes me wonder who these people are, though I'm sure we'll never know unless they disclose their identity--and they'd be silly to do so.

If they were in the USA and they had a bunch of those funds in Binance or Coinbase, they were smart to move the money out of there, or else they would be required to let the whole world soon know who they are.. whether they like it or not.

[Shary]

simply, in few words, to not get hacked

[Pipdips]

simply, in few words, to not get hacked

Nice reply. I think you are onto something...

[Thirdspace]

the article doesn't give references to any transactions in blockchain
so we can't tell (or guess) if they were consolidating, moving in/out of exchange, or etc
it only says there are several big transactions each from an unknown wallet to another unknown wallet

imo, whales are getting ready to sell when the price of bitcoin surges
or they are just doing it to spread FUD so people get scared and start selling
then whales will scoop up those cheap bitcoin on the market