What players are closely watched by investors in digital currencies and why it is important?
The Crypto Market Underwater World
Whales, octopuses, shrimps are not only inhabitants of the seas, it is also the name of cryptocurrency holders. Depending on the size of the wallet, the user is assigned a certain “rank”.
Shrimps and crabs are the least bitcoin holders. Shrimps are called users who have less than 1 bitcoin, crabs – from 1 to 10 coins.
Octopuses (1-50 BTC), Fishes (50-100 BTC), and Dolphins (100-500 BTC) hold significant amounts of bitcoin and are something of a “middle class” in the cryptocurrency world.
The top of the crypto market
Sharks (500-1000 BTC), whales (1000-5000 BTC) and humpback whales (more than 5000 BTC) are the most important cryptocurrency holders, among which, among others, there can be large companies, funds, wealthy investors.
Marine life sightings
Various analytic the services constantly monitor the actions of crypto whales and report major changes in their balances. Often, crypto investors use this information for additional market analysis.
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, earlier this year, whales started accumulating bitcoin after the price fell below $50,000, but the depreciation continued.
The positions of crypto whales are huge, so their transactions can affect cryptocurrency quotes. For example, a big sell can be followed by a crash, while a big buy can lead to explosive market growth.
Whales and handling
Often cryptowhales are accused of manipulating the market for their own ends. Many investors believe that the big players profit from the loss of a large number of small players.
KEY POINTS TO REMEMBER
- A crypto whale is a wallet address that contains a significant amount of cryptocurrency.
- The community and investors are watching crypto whales as they can significantly influence price movements.
- Whales can hold 10% or more of the total number of a specific cryptocurrency.