What players are closely watched by investors in digital currencies and why it is important?
The underwater world of the Crypto Market
Whales, octopuses, shrimp are not only inhabitants of the seas, this is also the name of cryptocurrency holders. Depending on the size of the wallet, the user is assigned a certain “rank”.
Small Fish
Shrimps and crabs are the holders of the least amount of bitcoins. Shrimps are called users who have less than 1 bitcoin, crabs – from 1 to 10 coins.
Bigger Players
Octopuses (1-50 BTC), fish (50-100 BTC) and dolphins (100-500 BTC) hold significant amounts of bitcoin and are somewhat of a “middle class” in the world of cryptocurrencies.
The top of the crypto market
Sharks (500-1000 BTC), whales (1000-5000 BTC) and humpback whales (over 5000 BTC) are the most significant cryptocurrency holders, among which, among others, there can be large companies, funds, wealthy investors.
Sea Life Observations
Various analytical services constantly monitor the actions of crypto-whales and report major changes in their balances. Often, crypto investors use this information for additional market analytics.
Purchases and Corrections
The purchase of cryptocurrencies by large players can be a signal for other participants. However, this does not always mean future market growth. For example, at the beginning of the year, whales began to accumulate bitcoin after the price fell below $50,000, but then the depreciation continued.
Mass Effect
The positions of crypto whales are huge, so their transactions can affect the quotes of cryptocurrencies. For example, a big sell can be followed by a crash, while a big buy can lead to an explosive market growth.
Whales and Manipulation
Often, cryptowhales are accused of market manipulation for their own purposes. Many investors believe that big players profit from the loss of a large number of small players.
KEY TAKEAWAYS
- A crypto whale is a wallet address that holds a significant amount of cryptocurrency.
- The community and investors watch crypto whales because they can significantly influence price movements.
- Whales can hold 10% or more of the total number of a specific cryptocurrency.
