The price of Bitcoin has seen better days when the value of the coin hit $ 59,600 four days ago and the exchange rate fell to a low of $ 45,700 per unit on May 12. There has been talk of whales selling coins and data shows that there has been some large wallet inflows. However, onchain data shows that the whales are either distributing money into multiple wallets or Bitcoin is being distributed more evenly to smaller fish.
Number of Bitcoin whales with 1K Bitcoin or more is decreasing, sharks, dolphins and small fish are increasing
As the cryptocurrency markets approach the weekend, traders and speculators are wondering what will happen next with these volatile price changes. In the past 48 hours, Bitcoin (BTC) and a host of other digital currencies have seen massive fluctuations in the value of fiat.
As usual, cryptocurrency participants have studied the number of “Bitcoin whales” and assumed that these large market participants have made massive waves.
Most people consider a Bitcoin Whale (BTC) to be an owner who owns 1,000 Bitcoin or more. A summary from bitcoinwiki.org states that a whale owns 1,000 to 5,000 BTC. A “humpback whale” or “megawale” is classified as a BTC owner with 5,000 or more coins.
Now some whales are individuals, and other types of whales are entities like crypto mutual funds like Grayscale Investments’ Bitcoin Trust. In the past few days, some reports have reported that the number of BTC whales in the crypto ocean has decreased significantly.
People often speculate on BTC whale action, but crypto market viewers have few tools to use to watch whales. In recent reports, Glassnode’s diagram “Number of addresses with account balance ≥ 1k” was used to visualize and closely monitor Bitcoin whales.
Glassnode’s data shows that there are just over 2,100 whales (addresses of 1,000 BTC or more) as of Wednesday and an additional 100 whales in the same month in the same year. This data does not mean that whales are selling, as any owner of 1,000 bitcoins at one address can simply split the money into two or more addresses.
Trickle down distribution or Bitcoin whale addresses that turn into multiple dolphin addresses
Some articles claim that BTC is being distributed more to holders with less Bitcoin than massive whales, suggesting whales are selling. Despite these claims, the data suggests that whales are distributing bitcoins, but they may be reorganizations of whale addresses.
For example, onchain data from whalemap.io shows signs of whale movement in the past few days and large wallet inflows in greater detail. Like Glassnode’s statistics, data from whalemap.io imply a decline in whales (equilibrium ≥ 1k) and a downward distribution cycle.
We also have data from a Bitcoin.com news report released on May 1, 2020. That article also covered the subject of whale counts and noted that whales received hundreds of BTC from “small fish”.
It is interesting to note that there are 100,000 to 1 million BTC stored in three addresses in a single address. That number hasn’t changed as of May 2021, and there are still three colossal whale addresses at 100,000 BTC or more. However, the number of “humpback whales” or “mega whales” addressed has decreased and there are not that many this year.
Data from the 2020 article and the current “Bitcoin Rich List” published on bitinfocharts.com indicate whale addresses with 10,000 to 100,000 Bitcoins, which have dropped from 106 to 85 addresses. Similar to the concept of the “trickle-down economy”, data from bit info charts. com alludes to whale addresses that distribute Bitcoin to addresses with lesser amounts of BTC.
One could assume that whales are distributing coins to “sharks (500 BTC)”, “dolphins (100 BTC)” and “fish (50 BTC)”. Or the whale addresses could simply reorganize into multiple addresses with a smaller set that are still managed by the same owners.
What do you think of the Bitcoin whale number decline? Let us know what you think on this matter in the comments section below.
Photo credit: Shutterstock, Pixabay, Wiki Commons, bitinfocharts, Whalemap.io, bitcoinwiki.org,
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