While investors are panicking about the collapse of the crypto-currency price, the Bitcoin whales and sharks are staying calm and taking advantage of the falling prices to accumulate even more BTC. As the saying goes, “money goes to money” and these big crypto asset holders know how to tip the scales in their favor. According to data from analytics firm Santiment, these addresses have managed to accumulate $4.4 billion in Bitcoin over the past few weeks. Thus, bringing the price of the queen of cryptos back to the $21,000 mark.
Whales and sharks push Bitcoin price to $21,000!
The big Bitcoin holders, whales and sharks, have accumulated a total of $4.4 billion in Bitcoin. This is at least the reason why the price of Bitcoin is exploding upwards according to several analysts. The price of the queen of cryptos has risen from $16,000 to $21,000.
For those unfamiliar with industry concepts, “whale” and “shark” describe investors with large amounts of capital. Whether it’s in dollars, Bitcoins or other cryptocurrencies. Thus, whales are the largest investors, usually investment funds, banks or other large corporations. On the other hand, sharks are often very rich or very early individual investors in a project.
According to data from blockchain analysis firm Santiment, Bitcoin sharks were the first to trigger this wave. These investors with wallets weighing between 10 and 100 bitcoins accumulated 105,600 BTC, worth $2.2 billion, in just 10 weeks.
They were supported by the smaller Bitcoin whales. The latter pushed the trend higher, adding about 67,000 BTC, worth $1.4 billion, over an eight-week period. This accumulation caused the price of BTC to rebound to $18,000.
The arrival of the big whales added fuel to the fire. With 37,100 more BTC, the price of the queen of cryptos surged to $21,000. This is a level that Bitcoin had last reached in November 2022.
Santiment’s analysis shows how whales have a major influence on price trends. And on the psychology of investors.
How do Bitcoin whales influence the market and investor psychology?
The price of Bitcoin is heavily influenced by the psychology of investors in the market. Large Bitcoin holders have a huge impact on prices because of their ability to buy and sell big. When they buy heavily, it can create a perception of high demand and lead to higher prices. It also encourages other investors to buy, fueling a bullish rally.
On the other hand, when they sell heavily, it can create a perception of oversupply and cause prices to fall. This, in turn, can cause other investors to sell, further exacerbating the price drop.
In fact, the crypto market is subdivided into two different groups: retail investors and large investors. The two have an inversely correlated movement. When one group buys, the other sells and vice versa. However, in most cases, the back-and-forth movement benefits the large wallets.
Since the cryptocurrency market is characterized by the lack of regulation, it causes players to act according to their morality. This often leads to price manipulation, where the big fish seek to swallow the little fish.
For example, whales looking to maximize gain may sell cryptocurrencies en masse to cause an artificial drop in price, the so-called “Pump and Dump”.
You’ve probably heard of the “tracking effect,” a well-known trend in the cryptosphere. New investors tend to buy when prices rise usually due to the fear of missing an opportunity (FOMO). In reality, the whales that triggered this wave will have already recouped their profits by selling high. The small ones who bought when prices were high find themselves losing out by selling low. Fortunately, technical analysis helps to avoid this.
Coming from a journalism university background, I came across Bitcoin and cryptocurrencies not long ago.
The potential of the Blockchain seduced me and I made it my research topic.