Dumping or transferring large amounts of BTC from one wallet to another negatively affects prices, causing losses for smaller traders.
Wallet addresses that hold large amounts of cryptocurrency are called Bitcoin whales. Whales are believed to be responsible for the occasional sudden price swings in crypto markets and traditional markets. Because of their ability to manipulate market prices, it is extremely important for general Bitcoin (BTC) investors to understand the traits that characterize individual whales and their overall impact on trading.There are four primary ways to monitor whale activity: monitoring known whale addresses, order books, sudden changes in market capitalization, and trading on crypto exchanges. Dumping or transferring large amounts of BTC from one wallet to another negatively affects prices, causing losses for smaller traders. As a result, real-time tracking of Bitcoin whales allows smaller traders to trade profitably amid volatile market conditions. Despite the global and decentralized nature of Bitcoin, tracking and monitoring whales is simply based on access to readily available trading data from crypto exchanges and services. Tracking known whales gives smaller investors an advantage, as the likelihood of spotting a whale trade is greatly increased. Furthermore, tracking market changes through order books and trades on crypto exchanges indicates incoming whale trades that can be exploited to profit during volatility. The crypto community also uses free services that inform investors of successful whale trades, often with information about sender and receiver wallets and the amount. One of the most popular services for automatically tracking whale trades is @whale_alert on Twitter, which issues alerts for large transactions. In a recent market update, Cointelegraph revealed, on-chain data suggested that the biggest Bitcoin miners were reluctant to act at current prices. BlockTrends analyst Caue Oliveira supported the above finding, highlighting the continuing “hibernation” among whale wallets. He added that “institutional movements, or whale activity as it is commonly known, can be tracked based on the transaction volume moved in a short period of time, both in BTC and USD.” Additionally, many altcoins continue to mimic Bitcoin’s downtrends as whales anticipate greener sentiment across the crypto market.Hardware, software, tests, interesting and colorful news from the world of IT by clicking here!