The well-known Chainalysis crypto firm set out to look into the growing fears that the whales of Bitcoin holding large number of the crypto could tank the digital currency if they sparked a mass selling frenzy.
For many the results that came out of chamnalysis’s study, which was a look into 32 of the most valuable bitcoin wallets, were very positive indeed. In fact, the same whales that many have been demonizing as a potential threat to BTC are actively trading in Bitcoin are the reason Bitcoin has not already tanked.
Billionaire Whale Allegedly Tanked BTC in August 2018
Chainalysis researched net profits and losses of these 32 wallets after fear was struck into those that follow the progress BTC. It was all down to the alleged billionaire that is rumored to have sold over 500,000 BTC tanking the world’s number one virtual currency thus resulting in a 15% loss in value back in August 2018.
Research Showed Whales Trading in BTC Are Stabilizing The Crypto’s Value
In the research of the 32 largest Bitcoin wallets, Chainalysis has revealed arguably some of the most interesting information about the whales of Bitcoin.
- 9 Wallets out of 32 are active traders sharing around 332,000 coins between them. When Chainalysis looked into these wallets activity, these traders are not selling Bitcoin, they are instead acquiring Bitcoin at times of price decline. This group is responsible for stabilizing the crypto rather than tank. As those late comers dissuaded by their losses decided to sell because they had enough, it is these traders that have been buying those Bitcoins.
- 15 Wallets out of 32 are the lucky miners/early adopters of Bitcoin who have suddenly seen their investment rise by up to 1,000%. These people are probably still busy living off their new found wealth and make up for another 332,000 coins.
- 5 Wallets out of 32 are lost. People that cannot locate their private key are now unable to access their crypto. These 5 wallets show 212,000 coins in total, which means there is around $1.3 billion in lost Bitcoins out there.
- 3 Wallets out of 32 are used by criminals. A couple are used by the Darknet and another is suspiciously being used for money laundering. These 3 wallets hold large individual amounts of Bitcoins with a combined total of 125,000 coins.
The Origins Behind Recent Negativity Surrounding Bitcoin
Naturally, after the 15% drop in value and hearsay reports claiming a billionaire BTC investor was involved, the crypto community began to ask questions as to just how dangerous these whales could be to the future existence of Bitcoin. Add this to the negative press Bitcoin has had lately in regards to its 2018 performance and some people are starting to lose faith.
With the value of Bitcoin declining since its huge 2017 upsurge in value, 2018 has been an unsettling year for those that have invested in the crypto. However, the attraction to Bitcoin for many was the 2017 price rises. Any negativity surrounding the declining value of Bitcoin is mainly coming from those that saw BTC as a potential gold mine ‘AFTER’ it showed huge price increases in 2017 – which have since dropped!
As a result, there are quite a few disgruntled investors who have lost out after buying their BTC at between the $9,000 and $10,000 mark. This group of people saw their BTC rise to $20,000 only to hold on and watch it sink to $6,200, which is today’s price at the time of this writing.
It is, in general, this group of people that are disgruntled, complaining, and have lost confidence. Many of these are exiting the market as they had enough of seeing what they thought was a no-brainer investment turn into roughly a 40% loss.
Lest we not forget, at the start of 2017 Bitcoin was worth around the $1,000 mark. Its value almost tripled by mid-2017, and suddenly by the end of the year, it was hitting highs of almost $20,000. It is now worth $6,200 and has remained reasonably stable over the last month or so. The chances are we have seen Bitcoin’s peak and now it is leveling out with another spike expected sometime in the future.