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Research: “whales” stabilize the cryptocurrency market



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.

In its study, Chainalysis divided the owners of these wallets into four categories:

  • traders (9 wallets with 332 thousand coins). These are “whales” who actively trade Bitcoin on stock exchanges. Presumably, most of these traders entered the market in 2017.
  • miners and early Bitcoin users (15 wallets with 332 thousand coins). Trading activity in this group is at an "extremely low" level. Nevertheless, in the years 2016-2017 during the growth of the price of cryptocurrency, these "whales" significantly reduced Bitcoin reserves.
  • lost (5 wallets with 212 thousand coins). The owners of these bitcoins have not made any transactions since 2011.
  • criminals (3 wallets with 125 thousand coins). “Whales” have fallen into this category, which are probably related to the darknet platform of Silk Road and are engaged in money laundering.

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.

Recall, according to research company Diar, "whales" store more than 55% of all bitcoins.

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