Data indicates that a huge volume of Bitcoin whale wallets are active. The active wallets in the last month only represent around 60% of the total BTC in circulation today.
Bloomberg says data from Flipside, a crypto analytics firm, indicates that the active trading of Bitcoin (BTC) has increased significantly in since last summer. According to the firm, this is “a big shift”. The firm tracks complete data of the largest cryptocurrency in the world and its research shows that many of the accounts are whales that have been dormant from the least 6 months to more than two years.
Whale is a term used in cryptocurrency circles for wallets or holders who have large amounts of the digital tokens and coins.
According to CEO of Flipside, David Balter, the wallets probably represent long time Bitcoin holders. They may have been sitting and idling out through the extreme price volatility seen in 2017. With the market now relatively smoother than what it was a year or two ago, this might seem the perfect time to liquidate their assets.
Crypto Crash Imminent?
With many whales preferring to buy or sell coins through over the counter (OTC) or private sales, they crypto exchange market has been relatively unaware in the last year. But with such a large number of wallets becoming active, this is something that cannot escape the eye of small investors.
Keeping a view of simple market demand and supply in mind, a huge sell order in the market by the whales would lead to an increase in the supply. Simple economics mean that the market prices will fall.
With other investors scared, this might start a chain reaction in which they will join the bandwagon and try to liquidate their assets. This frenzy of selling would create a dip in the Bitcoin value, leading to another crash.
Nearly 1,000 wallets hold more than 85% of all Bitcoin today. This is a staggering number and selling by them will have a very deep impact in the market. Bitcoin is already struggling to cross the USD 4,000 barrier in the last few weeks. Another crash would see the prices plummet even further.