Analysis reveals that Bitcoin Whales have been accumulating large stakes

Two academics contend 2017 Bitcoin bubble due to Whale’s manipulation

Where there are large amounts of data, there is always the possibility for analysis that can expose patterns and trends that may have been missed. If the blockchain is anything, it is a wealth of data and audit trails that await cogent analysis to reveal the secrets hidden beneath the surface. The latest analysis demonstrates that “Bitcoin Whales”, the largest holders of Bitcoins in the system, have been dramatically increasing the balances in their respective wallets since December of last year.

We have the benefit of two separate entities researching these accumulations, which corroborate that large investors have been adding to their stockpiles whenever dips occurred over the past few months. The first analysis comes from, which from time to time compiles its “Top 100 rich list”. It has noted that these so-called “whale wallets” have steadily increased their holdings in both Bitcoin (BTC) and Bitcoin Cash (BCH). According to its reporting, these accounts, after eliminating large exchange wallet accounts, control roughly 16% of all Bitcoins in circulation.

A second report from CryptoCompare validates the findings from and expands on their revelations. After eliminating the large wallet balances belonging to the Binance, Bitstamp, Bitfinex, and Huobi exchanges, “the remaining top 100 largest crypto addresses accumulated 151,505 BTC, which is currently valued at over $577 million.”

Both analyses also revealed that several large account balance addresses, which had been inactive for years, have also come to life and begun adding to holdings in both BTC and BCH. With regards to Bitcoin Cash, there are some 195 account addresses that hold anywhere from 10,000 to 1,000,000 BCH apiece, which represents 26.5% of all BCH in circulation.

Ever since the major meltdown in crypto valuations began a year ago, major investors were known to exit the market. Per one report:

At the end of the day, the crypto industry needs to prove itself in order to attract large investors back to the table. Over the past year, average transaction sizes have dropped from $5,000, at the end of the big run up, down to $130, a clear indication that Big Money has withdrawn to the sidelines to wait for good reasons to jump back into the market.

The question has always been when will these large investors return to the market? There has been speculation from a number of technical analysts of note that many of these “Big Players” have had open-to-buy orders in the low $3,000s, which have effectively acted as a bottom of support for Bitcoin.

Since the Christmas rally mounted by Bitcoin, there have been no less than three major dips. Each time, pessimists warned that valuations would fall well below $3,000 before getting better, but on each occasion, buying demand materialized and pushed BTC back toward the $4,000 level. This level, which is perceived as heavy resistance, was tested recently, the initial leg of what could indicate that more tests are to come. The participation of major “whales” behind the scenes provides one more bit of evidence that, perhaps, a solid bottom in Bitcoin valuations may have finally formed.

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