Crypto markets have been taking a hammering over the last few days, with Bitcoin losing its grip on $11,000. As Bitcoin slid downwards, the wider crypto markets also saw flurries of red across the board. Crypto whales weren’t idly standing by as markets sank, instead crypto whales were quickly moving their crypto around between exchanges and private wallets. Whales were having a field day picking up cheap Bitcoin and are now resting while markets decide which way to go – up or down.
Bitcoin Whales Moving Half a Billion in 24 Hours
Bitcoin whales led the charge on crypto shuffling, moving $521.3 million worth of BTC on just over 24 hours. First up, one whale moved 500 BTC from OKEx to an unknown wallet, then hours later we saw the reverse transaction back to OKEx. Then, 651 BTC left Binance for an unknown wallet, while 37,923 BTC made its way between unknown wallets in two separate transactions. Finally, 533 BTC was sent from OKEx to Coinbase.
Whales Playing the Game
It’s common for crypto whales to move their Bitcoin between unknown wallets as they make purchases or routinely change wallet addressed to prevent hackers from gaining access. The whales sending to exchanges are likely placing trades in a bid to capitalize on this market volatility. Back in July we saw a huge 1,192 buy order placed on Binance, triggering a mini bull run. If these whales can repeat this then we could see this slight drop turn around and Bitcoin push for $14,000 again. On the other hand, we could see whales sell off their Bitcoin in a bid to push the price of Bitcoin lower so that they can buy back in at a lower price.
Can Whales Be Stopped?
It’s without a doubt that whales have an enormous power over the crypto world, with one transaction being able to crash the crypto world in seconds. People are starting to wonder why a whale would place 8,000 BTC on an open exchange for any other reason than market manipulation, and they’re right for thinking so. If exchanges use KYC to the fullest, they can clamp down on whales that are manipulating the price.
Whales still rule the crypto world, and the general rule of thumb is do the opposite of the whales. When a whale is placing a huge sell order, it’s usually a good time to place a buy. Whales stick up massive sell orders and buy back up as it goes down – exactly when you would be selling your Bitcoin. By doing the converse of the whales, you could inadvertently land yourself on the winning side of a pump and dump.