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Bitcoin whales stabilize the cryptocurrency market, a study by Chainalysis

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Bitcoin whales are not the cause of volatility in the cryptocurrency market. This is the conclusion reached by analysts of the blockchain-startup Chainalysis, having studied the 32 largest bitcoin wallet worth $ 6.3 billion.

First of all, you need to decide who belongs to this category. Chainalysis divides the "whales" into four large groups. Here is how she describes them:

  • Traders: these "whales" are often lured into the trade of others, engaging in the purchase and sale of bitcoins . Nine wallets owned by major traders control about 332,000 coins worth more than $ 2 billion (33% of the total assets of all the "whales"). This is the largest and most active group among the "marine mammals". By the way, its representatives became interested in the crypto market only in 2017.
  • Miners / early supporters of Bitcoin: this is the second largest group that turned out to be in this market much earlier than 2017. It consists of 15 financial professionals who also own 332,000 coins worth more than $ 2 billion. Currently, the activity of this category is extremely low. In 2016 and 2017, a significant part of early supporters got rid of bitcoins, taking advantage of price increases.
  • Lost keys: these are five wallets with more than 212,000 coins worth about $ 1.3 billion. These "whales" will not be able to get their bitcoins back. Since 2011, there has been no movement of funds in their wallets.
  • The criminals: this is the smallest group among the "whales", consisting of three wallets, which contain more than 125,000 coins for about $ 790 million. Two of them are linked to Silk Road. Also, these wallets are supposedly used for tax evasion.

“Whales” from the category of traders are active buyers.

Analysts stressed that throughout 2017-2018, “bitcoin-whales” from the “traders” group preferred to buy cryptocurrency when the price fell, and not vice versa.

Chainalysis experts have concluded that “whales” do not have such a strong influence on the course of cryptocurrency, as some believe.

“Trading whales were rather a stabilizing than a destabilizing factor in the market,” the study says.