Today we’re talking about the biggest HODLers in the crypto ocean, whales. You may have heard talk of crypto whales before, but who are they, and how do they make such waves in the crypto market?
Read on to find out more.
A crypto whale is an individual or organisation that holds a large amount of a particular cryptocurrency. While there’s no official threshold to be considered a whale, it’s often said that bitcoin whales hold at least 1,000 BTC.
The term generally applies to an entity with the power to significantly impact the crypto market by buying or selling large amounts of crypto.
The enormous impact whales can have on the market was witnessed last year, when the price of ether fell by more than 50%. According to the CEO of crypto exchange Kraken, ETH’s plummeting price could have been due to a single whale dumping his life savings.
This kind of event has led crypto enthusiasts to start tracking whale activity. Doing so can provide market participants with insights into what the whales might do next and allow them to get ahead of market movements. But how can whales be tracked?
Thanks to the transparent nature of blockchain, whales’ movements can be tracked relatively easily. Wallets containing at least 1,000 BTC, for example, can be identified and then monitored for activity. If you’re not up for reviewing millions of blockchain transactions first-hand, however, there are a number of tracking tools designed to make the process more accessible and less time consuming, such as Whale Alert’s Twitter account.
For a rundown of what to look out for, check out this guide to on-chain analysis. Of course, it’s important to remember that monitoring whales’ activity isn’t a foolproof way of predicting market movements.
- Whale = 1000-5000 BTC
- Shark = 500 - 1000 BTC
- Dolphin = 100 - 500 BTC
- Fish = 50 - 100 BTC
- Octopus = 10 - 50 BTC
- Crab = 1 - 10 BTC
- Shrimp = less than 1 BTC