L2 Standard Bridged WETH (Base) (weth) 
Crypto Whales: Understanding Their Impact on the Market
The recent weeks have seen a surge in activity from dormant crypto wallets, with tens and hundreds of tokens being transferred to exchanges or other addresses. While this may have piqued public interest, it’s essential to understand how these whale transactions influence the market and why they may not be welcomed by everyone.
The Whales’ Transactions Rampage
On December 25, 2024, a Bitcoin wallet that remained untouched for nearly 14 years moved 20.55 BTC to another address, with the coins gaining over $2 million in value during that time. The same day, a different wallet released 210 BTC after ten years of inactivity, with the BTC stash growing by $20 million. These transactions were followed by other significant movements involving long-time dormant wallets.
For instance, on December 29, it was reported that someone sent 7,000 BTC from an inactive address to several different addresses, splitting the sum into seven 1,000 BTC outputs. This significant transaction didn’t involve selling the bitcoins but rather moving them to other wallets, with the 7k BTC stash value growing by several hundred million dollars in seven years.
When Whales Hold
As of December 30, 2024, there are four wallets holding nearly 650k BTC, which is over 3% of the total supply. These addresses are primarily cold wallets of crypto exchanges. According to the Bitinfocharts tool, less than 100 Bitcoin addresses hold around 15% of the entire supply, with many of these addresses likely belonging to individuals. If they decide to move their millions worth of crypto coins, it may trigger a bearish reversal even in an uptrend.
When whales hold their crypto, they decrease its liquidity. Almost half of all bitcoins are held in wallets with between 100 and 10,000 bitcoins on the balance. This group of whales impacts liquidity and value the most, keeping large amounts of crypto out of the market for years, sometimes over 10 consecutive years.
When Whales Sell
When whales get rid of their crypto, they signal other investors that someone who held millions worth of the asset in question decided that the asset isn’t worth it anymore. These transactions don’t go unnoticed, as the Bitcoin network’s transparency allows for monitoring. Each massive transaction makes headlines and triggers much talk on the internet. Some people, especially those who don’t follow a trading or investment strategy, may fall for emotions and start to panic, potentially flipping the market or increasing price volatility.
Alleged Market Manipulations
On December 27, 2024, Robert Kiyosaki, author of “Rich Dad Poor Dad,” accused BlackRock CEO Larry Fink of dumping Bitcoin, claiming that BlackRock is “suppressing Bitcoin price, so the whales can buy Bitcoin at under $100k.” Although there’s no evidence to support or dispute this claim, it highlights the common accusations of market manipulation against institutions and individuals holding large amounts of crypto.
Whales can impact prices by selling a large amount of BTC, sending the price down, re-buying what was sold during retracement at a discounted price, and enjoying profit made out of the price differences. Other tactics available for whales include rug pulls and wash trading.
Crypto Whales: Friends or Foes?
Crypto whales are neither friends nor foes; they are large bodies minding their own business. If we understand how they impact the market when they spend crypto, we can react to whale alerts accordingly and avoid trouble. The only exception is the whales consciously manipulating prices. However, preparedness and caution can save us from them too.
Stay informed about the latest developments in the crypto market by following Global Crypto News for the most up-to-date information and expert analysis.
By understanding the impact of crypto whales on the market, you can make informed investment decisions and navigate the complexities of the crypto world.
