![Bitcoin whale: what it is and how to tell it apart[Basic knowledge]| CoinDesk JAPAN](https://files.ourbitcoinnews.com/wp-content/uploads/2024/01/20044201/shutterstock_1231385731.jpg "Bitcoin whale: what it is and how to tell it apart[Basic knowledge]| CoinDesk JAPAN")
Bitcoin whales have become some of the most important participants in the Bitcoin market, with large amounts of Bitcoin (BTC) being bought and sold, thereby significantly influencing the price.
Let’s take a closer look at Bitcoin whales, how they affect the market and how you can spot them.
What is Bitcoin Whale?
A Bitcoin whale is a person or entity that holds large amounts of Bitcoin and can influence the price with a single transaction.
The generally accepted minimum holding amount for a Bitcoin whale is 1000 BTC. This is a so-called colloquial expression compared to other “small fish” on the market.
Whales can be individuals or groups that pool their funds and make large investments.
What is the impact of whales?
Bitcoin whales, the biggest players in the Bitcoin market, have enormous influence.
They hold large amounts of Bitcoin, and each transaction has a significant impact on the supply or demand for Bitcoin on exchanges. As a result, it often affects price movements.
Specifically, Bitcoin prices often rise when whales make moves to add to their Bitcoin positions. Conversely, if you sell part of your position, the price tends to fall.
Moreover, whaling wallets are mostly tracked, and as a result, the broader Bitcoin trading community often reacts to and mimics whaling (or anticipated trades). This leads to large price fluctuations.
Therefore, some whales prefer to trade directly with other traders using OTC trading banks to reduce their impact on prices.
But some stock market whales take the opportunity to move the market in their desired direction by showing the market that they are big buyers or sellers.
3 ways to see whales
Knowing how to spot a Bitcoin whale can be an asset to your Bitcoin trading game as simple buy and sell orders can affect the market.
Let’s look at three ways to spot a Bitcoin whale.
Use Blockchain Explorer: With Bitcoin, everyone has access to all transactions. Blockchain explorers like blockchain.com can help you identify large amounts of Bitcoin moving around. Analyze trading patterns: Whales tend to trade heavily, causing prices to fall or rise. If you pay close attention to trading patterns, the emergence of unusual patterns may indicate that a Bitcoin whale is on the move. Social Media: Some Bitcoin whales are active on social media, sharing investment strategies and opinions about the Bitcoin market. By checking their social media accounts, you can gain some insight into their potential trading activity and use of information.
The Biggest Bitcoin Whales
Looking at the Bitcoin Whale chart, as of July 2023 there are 2,018 wallets with balances of 1,000 BTC or more. Some of them hold Bitcoin for a long time.
Let’s take a look at five of the most notable and widely known Bitcoin whales.
satoshi nakamoto: The true identity of Satoshi Nakamoto, the creator of Bitcoin, remains unknown. There is no clear evidence whether he is an individual or a group. Whoever Satoshi is, he mined about 1 million BTC and the wallet remained inactive for years. Mr. Changpeng Zhao: The co-founder of Binance, whose estimated assets exceed $10 billion (about 1.48 trillion yen, equivalent to 148 yen to the dollar), is one of the top billionaires in the crypto-asset industry. Although the specific amount of Bitcoin held is unknown, he has stated in the past that crypto-assets make up 95% of his portfolio. winklevoss brothers: Brothers Tyler and Cameron Winklevoss started adding Bitcoin to their portfolio in 2012. At one point they held about 1% of Bitcoin in circulation. Michael Saylor/MicroStrategy: Michael Saylor holds approximately 150,000 BTC through business analytics software company MicroStrategy. He is known as one of the most vocal supporters of Bitcoin, especially on his X account, where he promotes the benefits of Bitcoin. Mr. Tim Draper: An American venture capitalist, he is known for having bought 29,656 BTC from the US Federal Security Agency when the assets of the dark site Silk Road were auctioned. He opposes government overreach and advocates decentralization. Although his current BTC holdings are unknown, he remains a vocal supporter of Bitcoin.
Understanding the behavior of Bitcoin whales can help you make smart moves in the market. But it’s important to remember that even whales can make irrational and emotional decisions.
Some may even try to manipulate the market to their own advantage. You not only want to monitor their activities, but also make sure you determine the reasons for their actions before making decisions.
｜Translation and Editing: Akiko Yamaguchi, Takayuki Masuda｜Image: Shutterstock｜Original Text: Bitcoin Whales: What They Are & How to Spot Them?
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