Wednesday, August 21, 2019

According To Report, A Large Number Of Bitcoin Whales Have Left The Market

According to Longhash, a platform that focuses on cryptocurrency and blockchain, the power of Bitcoin whales has weakened in the last quarter of 2018. It is as a result of more wallets holding a larger amount of Bitcoin’s total supply and activity from long-dormant wallets. As such, wealth is gradually being dispersed and only one person or a small group selling off their asset will not significantly impact on the market.

Bitcoin Whales Control How the Market Operates

Bitcoin whales are known to largely control how the market operates by either spiking the digital asset’s price or causing its dump. The latter is as a result of the millions worth of Bitcoins they have in storage and which on selling, increases Bitcoin’s supply in the market and may even trigger other investors to either buy in or sell theirs.

Longhash, on the other hand, in an interview with Eric Stone, head of data science at Flipside Crypto made some findings. Stone was asked to explain the activity of dormant Bitcoin accounts. In response, he stated that currently, 99% of Bitcoin’s total supply is held by 8.59% non-empty wallets.

Increase in the Number of Wallets Holding a Large Portion of Bitcoin

Therefore, this is an increment from the 6.7% non-empty wallets in November 2017 and almost similar to 8.56% in January 2016. That being the case, Stone noted that it means Bitcoin’s supply is gradually being spread across several wallets. It has been the case in the past year, instead of a dramatic change, he added.

Stone also pointed out that 16.4% of the entire Bitcoin supply has been dormant for two and a half years. Between six to two and a half years, 15.6% has not been moved. However, in the last one to six months, 45.8% has been moved. The same can be said about 8.9% that has been moved between the past week and one month.

Related Article:  Bitcoin & Ethereum Now Available in 10,000 Tobacco Shops in France

Are Institutional Investors Manipulating the Market?

Another question that was posed is if Stone believes there have been any market manipulation by institutional investors. Stone pointed out that the theory may be interesting, but it is extreme given that these are institutions that are looking for a way to ruin Bitcoin’s reputation due to its market manipulation.

He, however, added that it is possible for institutional investors to want to see fewer whales manipulating the market. In this case, they may sell their Bitcoin which may cause others to follow suit and it will end up influencing the price of the digital asset. Based on Stone’s deductions, more wallets are now in control of 99% of the tokens in supply even though it is still a small number.

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