Bitcoin Whales Buy Low, Sell High; Retail Investors Chase Rallies

The coins were quite affordable, and any massive amount of money could get you a substantial amount. That is different from now, as the coins range above $10k per BTC. “There is now a big sell off happening which negatively impacts the price,” Mr Isaacs said. “This will continue to happen until the market is more established.” “Many investors are possibly cashing out as a combined result of impatience and a desire to break even” Mr Gouran told The Independent.

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Ether , the second-largest cryptocurrency by market capitalization, moved steadily up throughout the week gong from about $1,000 to over $1,200. The cryptocurrency appears to be facing resistance to move up to $1,300 near its all-time high. BITCOIN ‘whales’ who hold staggering sums of the cryptocurrency could crash the market, experts have warned. Times have been good to the whales and incoming institutional money. If the tide turns, it will be the big Bitcoin holders driving the trades. While Bitcoin may be touted by believers as the democratising future of money, free from central banks and governments, in truth the market is concentrated in the hands of a few hungry whales.

• Mr Musk, who recently overtook Amazon founder Jeff Bezos to become the world’s richest person, tweeted on Monday that he would help Dogecoin become the “currency of the internet” if major holders sold their stake in the cryptocurrency.
• It’s believed that around 2,500 “whales” control roughly 40% of the Bitcoin market.
• The process lasts for a few minutes before the market correction.

They then have the power to control pricing and market movements. The whales have also mastered panic selling as they seek to gain more market share. Most people are emotional and can easily be swayed with fake news. The changes in the market could be unimaginable hence losing the value. Instead of selling, they can buy the coins before the market correction.

“Also, with many of bitcoin’s investors being young adults, it is possible that a good percentage of them are in college, and the beginning of the school year prompted a need for cash – thus forcing them to sell some of their bitcoin.” According to Shidan Gouran, CEO of Global Blockchain Technologies Corp, this could be because the one-year anniversary of bitcoin’s 2017 boom is approaching. This means some of the early investors may be wanting to sell their holdings while they are still ahead. Other experts have pointed to the fact that trading volumes increased despite the price dropping, suggesting a mass sell-off.

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An Ethereum-based investment fund, from the Canadian money manager 3iQ, has gone public on the Toronto Stock Exchange . Some $76.5 million was raised in an initial public offering, which sold off two types of shares that offer exposure to ether, Ethereum’s native currency.

He has warned against those looking to crypto as a get-rich-quick scheme. He has also let users know that he is not running any giveaway, promotion, or advice on Telegram. The giveaway scam is one of the most widespread crypto scams in recent times. Given their anonymous status, the whales are not so big on social media. Still, a few of them are willing to create profiles and interact with Bitcoin enthusiasts. For example, there can be a sudden decline in prices within 10 minutes.

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The Financial Conduct Authority warned earlier this month that amateur investors should be prepared to “lose all their money”. According to industry data, around 13pc of all Bitcoin, some $80bn out of a total of $600bn, sits in the hands of just over 100 individual accounts. The top 40pc of all Bitcoin, roughly $240bn, is held by just under 2,500 known accounts out of roughly 100m overall.

This is all well and good and true, but today there is the growth of whales of a new kind. For now, those new wales have even stronger control over the plankton on which they feed. I have used this example at FinTech and Cryptocurrency events showing that if small companies and people who represent the bulk of bank clients gather together they can starve a whale, as they are the plankton. Whales are the largest animals on Earth, and many kinds of whales live from eating one of the smallest animals, plankton. The Ethereum Foundation staffer and research scientist presented on how to utilize this open cryptocurrency network for local and international transfers, at the Pyongyang Blockchain and Cryptocurrency Conference. This information – essentially that ether is uncensorable – is decidedly in the public domain.

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The only time to sell the coin is after a widespread event that threatens a decline. The widespread sales drive the Bitcoin lower as the demand floors. They can easily create a violent decline in the prices of the coins without any corresponding development.

The latest Glassnode report indicates an 8% decline of the whale addresses within the past two months. While the whales decline, the crypto owners have been rising in the same period. The whales having so much power, seems like a defeat for the coin. They would only sell when they have to and buy when it benefits them. Several people owning the coins reduces the number of whales and their power over the industry. Yet despite the current state of the market, Mr Isaacs remains confident about bitcoin’s longer term prospects. Even its current trading price of around $6,500 – down from around $20,000 last December – is still higher than its market value at this time last year.

According to BBC News, a price crash in 2018 was attributed to China and South Korea’s crackdown on digital coin exchanges, which led to a sell-off “across the market globally”. Bitcoin can be purchased in fractions, meaning investors don’t need to spend thousands to get hold of the virtual currency. For instance, an investor can hold £10 worth of the cryptocurrency, which would equate to roughly 0.00058 of bitcoin.

They can spend the CBDC at physical stores equipped with the appropriate point-of-sale technology, and now online via major Chinese companies. More than 300 new developers per month are coming into crypto to work on Ethereum, according to data compiled by venture firm Electric Capital. In its annual developer report, the VC found the number of coders entering the crypto space to develop blockchains and projects is increasing nearly across the board – though Ethereum is by far seeing the most action. Almost 2,300 average monthly developers worked on Ethereum across the third quarter of 2020, with Bitcoin in second at a bit under 400 (up 70% from three years ago).

The post Bitcoin whales continue to accumulate despite BTC price holding above $50K appeared first on CoinTelegraph. The number of Bitcoin whales is increasing as the price of BTC continues to rise.

Since the beginning of 2020, the value of the cryptocurrency has surged from around £6,500 to close to £30,000 per unit, a near 300% increase. considering banning investment in any and all cryptocurrencies, meaning citizens cannot even transact via foreign exchanges. MicroStrategy’s conversion to Bitcoin, as well as Tesla’s recent allocation of $1.5 billion USD to this superior store of value, instills confidence. Apart from high-net-worth investors who might seek bitcoin for their private holdings, we’re now also picking up on corporate interest. launched Asia’s first institutional-grade Bitcoin Index Fund last January.

Bitcoin is a unit of digital currency and a worldwide payment system. “It has no physical form and exists only as a string of computer code,”The Times says. It is bought and sold online, generally in exchanges and stored in an online “wallet”.

For Bitcoin, they are individuals or entities holding more than 1,000BTC. Most of the traders become whales by purchasing lots of coins at low prices. The digital currency is a highly speculative venture that typically appeals to investors hunting for higher yields. A chunk of the market is driven by the “bitcoin whales” – the 1,000 or so individuals who own 40% of the market. During that bitcoin run-up, institutions and whales were able to buy dips and oftentimes sell when prices went up. That left the majority of the retail investors scrambling to chase the rally, according to a newly released OKEx data report. As the price of the cryptocurrency surges to new record highs, there is growing evidence that institutional investors are driving demand.

There are more bitcoin “whales” than ever, and new data shows how they drive market movements. And the number of Ethereum developers is growing at a breathless pace. The latter group is unlikely to be the cause of each price dip by intentionally selling their bitcoin in order to cause a market crash, according to analysts who spoke with CoinDesk. According to the report, the data indicated that while large bitcoin holders are “in the business of buying low and selling high,” they are not necessarily interested in buying bitcoin into rallies the way retail investors have been. Lagarde did not provide any specific examples of money laundering cases, but said she understood there had been criminal investigations into illegal activity. The cryptocurrency market going past $1 trillion has seen Tether, the largest stablecoin issuer, mint tokens in record numbers.

He adds that the current macroeconomic environment, in particular the prospect of rising inflation, has accelerated the trend. “The price of Bitcoin is going higher for the same reason as gold prices are rising, on the expectation of coming inflation and in the face of constantly increasing asset purchases and a falling dollar,” he added. The Fintech Times is the world’s first and only newspaper dedicated to fintech. But through a combination of its mining pools, hedge funds, exchanges, banks and regulators, Asia will certainly have its say. He also uses the page to curate other cryptos and addresses other Bitcoin concerns. Some of his latest tweets have labelled Ethereum a “science fiction experiment.” This was a reply to a user who had claimed Ethereum is a failed science experiment. He has also disputed the recent claims that altcoins are the certain return assets.

Warning signals over the bubble have been picked up by investors, according to Deutsche Bank. A survey of investors found 90pc believed stock markets were in bubble territory, with Bitcoin top of their concerns. Meanwhile, his company, Microstrategy, once a little known software vendor, has since last summer embarked on a no-holds-barred acquisition of the digital coin worth more than $2.5bn, many of them at prices close to $20,000. By clicking below to subscribe, you acknowledge that your information will be transferred to Mailchimp for processing.

Institutional investors qualify for a free of charge subscription to portfolio institutional. Sign up to the portfolio institutional newsletter to receive a weekly update with our latest features, interviews, ESG content, opinion, roundtables and event invites. “We have seen that Bitcoin and gold prices dropped when we had news such as Biden’s larger than expected recovery package or the Pfizer BioNTech announcement,” he added. “I don’t see anyone holding on to Bitcoin or gold in a strong recovery scenario,” he warns. In the UK, investment manager Ruffer has taken the bold step of allocating $15m (£11m), or 2.5% of its multi-strategy fund, into Bitcoin. But for most UK pension funds and insurers, the lack of liquidity, volatility risks and the absence of a clear valuation have been a deterrent to invest. Their concerns were at least partially reinforced by the FCA, which has banned the sale of crypto-based ETN’s and derivatives to retail investors in January.

Due to the nature of Bitcoin transactions – they are recorded on a verifiable digital ledger – it is possible to see many of the biggest transactions play out in real time and to identify digital wallets. Of course, this means that digital coin believers argue the price is only on the way up, due to the scarcity of its supply. There has been a recent push of institutional money into cryptocurrencies. Square, the payments company founded by Jack Dorsey, bought $50m of Bitcoin in October (which are now worth around $150m). UK investment fund Ruffer said in December it was buying £550m of Bitcoin.

But the price of Bitcoin has since soared — with a rise of 720 per cent since March 2020 alone. Regardless of its price, Bitcoin continues to be a wild cultural phenomenon. And Bitcoin’s price is highly volatile, having dropped by around $10,000 from its high of $42,000 earlier this month. It’s believed that around 2,500 “whales” control roughly 40% of the Bitcoin market. Now experts have told The Telegraph how there are fears that Bitcoin “whales” hold too much sway over the market. This phenomenal rise has made multimillionaires and billionaires of some investors.