Cryptocurrency whales are among the most underrated yet important dynamics in the industry. These are holders whose accounts contain huge amounts of digital assets, which is why they can affect liquidity, price, and governance.
This is why investors and traders have been paying attention to them recently, as more whales have moved their assets this summer after several years of inactivity. The trend might’ve been triggered by SpaceX’s movement with a transaction of $150 million worth of BTC, for the first time since 2022.
Whale movements can increase price volatility by selling a significant portion of their assets, potentially leading to a price dip. On the other hand, whales buying large quantities of crypto may increase the demand for Bitcoin. In some cases, whales’ actions can panic investors and traders, especially when these movements affect the relation of 1 BTC to USD , as historical patterns offer useful data about forecasting prices.
Let’s examine recent whale activity in the market.
Reports found whale moving $1.26 billion worth of BTC
Crypto experts observed that three wallet addresses, likely owned by the same whale, moved 10,603 BTC worth approximately $1.26 billion. These wallets had held the assets since 2020, with two remaining dormant until July.
The wallets transferred their holdings to separate addresses. Experts believe a common address interacted with these wallets, suggesting the same individual or entity is behind the transactions.
However, this is not unusual, as at the beginning of the month, another whale moved over 80,000 BTC worth of $9.5 billion, the largest transaction since the address received them in 2011. The Satoshi-era wallet has then transferred the holdings to a company, so it will likely prepare to sell them.
The recent BTC rally motivated whales to transfer all their funds
Bitcoin has experienced a rally in the past weeks, so this might’ve been the motivation for big whales handling their Bitcoins for the first time in years. SpaceX, for example, was one of the companies making a similar move this month, transferring 1,308 BTC worth of $150 million, without making a statement on the matter.
Since 2022, the company has sent multiple batches of Bitcoins to Coinbase, totaling approximately 17,314 BTC. However, this hasn’t significantly impacted the combined accounts of SpaceX and Tesla, which may hold over $2 billion in BTC.
Whales are also interested in other digital assets
While the main interest centers on Bitcoin due to its growing adoption and accelerating development in the cryptocurrency space, whales appear to be cautious of other assets, such as NFTs. For example, the NFT market experienced a growth in market capitalization due to the rally, which intensified after a whale purchased 45 CryptoPunks NFTs for over 2,080 ETH, valued at $7.8 million.
Regular investors and traders are also showing interest, anticipating a prolonged bull run and seeking value in underpriced NFTs. The whale’s purchase highlights growing demand for established blue-chip NFT collections.
Users should analyze the whale’s movements
As whales have the power to trigger market reactions, investors and traders should closely follow their activities. Monitoring could help anticipate price movements, as well as other trends in the crypto sector. The whale movement analysis includes a few steps:
- Finding tools that can offer on-chain transfer data about specific wallets, as well as check platforms that can notify them about large transfers;
- Paying attention to the amount of whales transferring, especially towards exchanges, and to the timeline in which they choose to move the cryptocurrency;
- Analyzing historical patterns ― whales accumulating more cryptocurrency can signal a bullish trend, while moving the assets can be followed by a price drop;
- Checking volume and liquidity data ??― sudden transaction volume spikes showcase whale activity, while large withdrawals can lower liquidity levels;
Who are the most prominent whales in the industry?
Wallet classifications in the industry are extensive. Whales typically hold over 1,000,000 tokens, while sharks hold 100,000 and dolphins 10,000. The hierarchy continues down to krill wallets, which contain only a few tokens.
Therefore, whales are the most significant because they hold the most coins, especially Bitcoins, which give them the power to influence the ecosystem. For example, an important whale is Changpeng Zhao, Founder & Former CEO of Binance.com, who recently stated that the “Crypto market cap could reach $5 trillion as institutional demand grows.”
In addition to high-profile individuals, several companies also hold significant amounts of Bitcoin. MicroStrategy, Galaxy Digital, and Tesla are among the sector leaders in estimated Bitcoin holdings.
As these entities increase their Bitcoin holdings, their overall availability on the market can be reduced, which in turn lowers their liquidity. Therefore, traders will find it more difficult to buy and sell the asset.
Is this recent trend indicating a significant shift in the crypto market?
When whales move huge amounts of assets, this could signal a change in coin prices. In most cases, the movement leads to low prices; in such instances, it’s best to remain calm and ride out the moment with DCA (dollar-cost averaging).
DCA allows you to leverage any moment from the crypto cycle by investing a regular number of coins regularly, regardless of the price. Even if the price of BTC drops, continuing to invest a certain sum in the asset per week will help balance the losses with the revenue in the long run.
Investors may struggle with FOMO (fear of missing out) when they notice the prices of an important asset like Bitcoin drop dramatically following immense asset movements from whales, but maintaining calm is the ideal approach.
Final thoughts
As another Bitcoin whale moves a significant number of coins, we’re faced with a trend that could lead to lower prices in the near future. Along with SpaceX, several BTC whales have chosen to take action with their assets after years of inactivity, raising questions about whether the next crypto cycle will be a bear run led by Bitcoin’s rally.
