bitcoin-whales-holdings

Bitcoin Whales Holdings 2021: Is There A Growth Expected?

There is a substantial growth in the Bitcoin whales holdings and accumulation according to a report published by a digital currency exchange. The Bitcoin price has increased more than 400% since March 2020, but the increased price has not put off big investors. According to that study, Bitcoin whales continuously bought. Now you may wonder who are the Bitcoin whales? Bitcoin whale is a crypto term that is used to denote entities or individuals that hold huge quantities of Bitcoin. Whales have a hold over so much digital currency that they can influence the currency valuation.  

Understanding The Concept Of Bitcoin Whales Holdings

Bitcoin holders who hold large amounts of Bitcoin are known as whales as their movement disturbs the water that smaller fishes navigate in. According to the 20-80 rule, it is said that 20% of the Bitcoin holders have summed up 80% of the value of Bitcoin in US Dollars. According to a study, in the crypto whale chart, only 3 Bitcoin wallets own 7.08% of the total Bitcoin that is presently in circulation as of Q1 2021. This percentage is valued at $74 billion. Along with that, the top 100 wallets holding one third of the total Bitcoin are presently in circulation in the crypto market which is valued at $342 billion. 

Whales at times can be a hindrance for Bitcoin and there is a concentration of wealth at a certain level. To be more particular, if this amount sits without being moved in an account then it will lower the liquidity which will be the reason for an increase in price fluctuation of Bitcoin. Price volatility is further increased if there is a movement of a large amount of Bitcoin at once by the whales. If the Bitcoin whales selling is for the purpose of state currency, the large size of transactions and lack of liquidity can exert downward pressure on the value of Bitcoin. 

How Much Bitcoin Is Owned By Whales?

Whales have the power to influence the valuation of the currency and, seeing the recent fluctuations of Bitcoin in the recent weeks, they are highly under the limelight. According to a report by a reputed newspaper house, as per the data of the industry, around 13% of the total Bitcoin or nearly $80 billion rests in just more than 100 individual or entity accounts. 

Are Whales Selling Bitcoin? 

There is a little bleakness in the short term prospect of Bitcoin whales holdings. Along with data that are indicating renewed selling by the whales, large investors have the ability to manipulate the market. These Bitcoin whales are known for the transfer of huge funds. In recent times Bitcoin whales have decreased the selling of Bitcoin significantly. 

Who Are The Largest Bitcoin Holders?

Kyle Davies and Su Zhu, who are the former traders with Credit Suisse, are the world’s biggest Bitcoin holders having a portfolio worth billions of dollars. Apart from them, given the data that 100 Bitcoin wallets sum up to 32% of the total Bitcoin in circulation is it possible to find the names of these whales?

The names of these Bitcoin whales are not very obvious as we all know cryptocurrency do not reveal names and details while transacting, so Bitcoin whales list is a speculation with some surety of the holders. 

  • Satoshi Nakamoto: The mystery of Satoshi Nakamoto is near to being solved. But presently the story took a twist. One likely candidate for Satoshi Nakamoto is Craig Wright.
  • The Winklevoss Twins: Tyler Winklevoss and Cameron are famously operated by Armie Hammer in the film “The Social Network”. They were the early enthusiasts, adopters, and evangelists of Bitcoin. 
  • Tim Draper: He is an American venture capitalist and also the founder of the firm “Draper Associates, Draper Fisher Jurvetson, Draper Venture Network, Draper University, and Draper Goren Holm.”
  • Barry Silbert: Barry Silbert is the founder and CEO of “Digital Currency Group” which is known to have invested in over 75 Bitcoin based companies. 

Why Are Entities Investing In Bitcoin?

Both Ruffer LLP and One River stated the macroeconomic risk that is arising from the present economic crisis as reasons for their investment in digital currencies. It also helps that the price of Bitcoin has been on a tear recently, setting new records of being all time high. 

The rampant fiscal spending by central banks has dissolute national currencies and can be the reason for inflation, stated by Peters from One River. Low interest rates on bonds and other savings elements have further complicated the situation by closing off other investment pathways.

The current buying spree places the millionaires to address at the seven week high for the amount of Bitcoin that has been held with the address that is representing more than 9.11 million Bitcoins. 

Santiment, that is a crypto analyst platform on June 16, 2021, tweeted, 

“Bitcoin addresses holding between 100 to 10,000 $BTC have accumulated 90,000 more $BTC in the last 25 days. They now hold a 7-week high of 9.11m $BTC, currently worth a total of $366.89 Billion at this time, and 48.7% of the total #Bitcoin supply. “

Conclusion

Bitcoin whales holdings account for 32% of the total Bitcoin that is currently in circulation. These holdings can be the reason for increased fluctuations in the price of Bitcoin and also inflation. Bitcoin’s price has increased from $11,000 in October 2020 to $64,000 in 2021, which is a 400% surge. But despite that surge, big investors are still investing in Bitcoin.

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