WHALES PREPARE FOR A BITCOIN RISE
In the crypto world, various aspects cause significant movements in the price of volatile assets such as cryptocurrencies, you will find the elements that will improve your investment options.
One of these aspects is the making investment in bitcoin, as their 1st movement of crypto; these are nothing more than gigantic holders of cryptocurrencies, which by carrying out small movements or transactions, sales or purchases, cause great upheavals in the tremendous and controversial cryptographic market.
Do you know what whales are?
Whales in cryptography are nothing more than investors who have a large amount of cryptocurrency; that is, a person who owns 20 thousand bitcoins has an amount equivalent to approximately 1.28 billion dollars.
To be called a whale, there is no precise number of cryptocurrencies that someone has to possess; it is only enough that it represents a high value, and they will be identified as essential investors not to lose sight of in the market since they have a power greater than that of a private and ordinary investor.
The most influential whales of bitcoin are represented by the Winklevoss brothers, Satoshi Nakamoto, creator of bitcoin, and the great capitalists such as Barry Silber and Tim Draper.
It should be noted that the three most significant Bitcoin holdings comprise 3.07% of the entire bitcoin stock in circulation and represent a value of approximately $27.8 billion as of September 2021.
The importance of whales to the crypto market
In the same way that happens in the stock market with shares or with an indifferent good that is traded, cryptocurrencies experience variations in their prices based on supply and demand.
What happens with cryptocurrencies is that when investors show interest in buying, the increase in demand is triggered, and by default, prices rise.
At the same time, an adverse situation may arise, which increases the offer, such as what is sought to be sold. Then, each one will offer a lower price consecutively to opt for the best possible and sell their cryptocurrencies as quickly as possible. In this way, the cost would drop to such a point that no one agrees to sell below a specific price established as sales occur.
The sale of crypto from a whale affects the price of digital currencies
If the whale does not sell its cryptocurrencies on a large scale, there will be no increase in supply; therefore, the price does not have to experience any variation.
Instead, investors worldwide are trying to get ahead of whale sales since a single whale movement will cause a knock-on effect, focusing on fear.
Which causes thousands of investors to sell their cryptocurrencies in advance for the whale to make moves and sell them in advance, and prices drop significantly.
There is a particular situation that occurred, and we must observe with a Bitcoin whale, where an unknown investor, who had more than 2000 bitcoins in his cryptocurrency account since October 2013, these amounted to almost 300 thousand dollars for that year, and currently change your bitcoins for two other wallets.
Where the 300 thousand were revalued to reach 143 million dollars today, the sale of all these bitcoins could knock down the price of the most influential cryptocurrency of the times.
Due to this fear, several investors anticipated and chose to sell the cryptocurrencies they owned, causing a drop of more than 10% in the value of Bitcoin.
Although the whale did not sell, the transfer of wallets revolutionized the market.
The Bitcoin whales are nothing more than other holders of assets at an excessive level where their movements cause a very significant impact on the market, whether due to the very high increase in volatility, the lack of liquidity, or a merger of both.
If they suddenly decide to sell them, there will be a vast supply; if the investors who own the whales short sell them, it will cause a massive drop in costs.
The crypto economy is very complex; the behavior of the markets must be understood and analyzed because they constantly experience noticeable variations, which directly affect investors in general.
Cryptocurrencies provide a vast world of investment and profit; we have to be clear about the risks that this word implies, so that when investing, establish a considerable amount that is to our liking and decision, in case of losses occur, they are not so significant in our economy, as it is pursued is financial growth.