The chain analytics company posted a tweet regarding transactions over $100,000 and their effects.
Chain analysis company Santiment tweeted on Mar. 13 regarding their latest analysis of ‘whale’ transactions greater than $100,000. Santiment found that transactions involving whales were increasing over the long term. Moreover, such transactions still affected market volatility.
#Bitcoin, #Ethereum, #Chainlink, and #BinanceCoin continue to see long-term rises in whale transaction counts, which we deem any single transactions valued at over $100,000. Large addresses amongst #crypto's elite assets continue to make volatile waves. https://t.co/CYSwkCkP26 pic.twitter.com/azJNtuGOa7— Santiment (@santimentfeed) March 12, 2021
Whales on the Move
While Santiment focused on the number of whale moves, the quantity in such an event can be astounding. On Mar. 11, a Bitcoin whale moved 5,000 BTC from an address that had lain dormant for several years. That equaled $280 million at the market rate when the BeInCrypto article was published.
Moreover, on Jan. 27, someone moved 31,010 BTC from a wallet that was quiet for two years. At the market rate of the day, the amount of Bitcoin equaled nearly $1 billion. It was one of only 42 wallets known with that volume of BTC in it. The whale tracker BitInfoCharts shows that when the wallet was filled in 2018, the Bitcoin cost $202,000. The site also shows that transaction fees were about $5. Yes, five dollars.
The owner of the wallet is unknown, as is the recipient. However, news that in January, Tesla purchased $1.5 billion in Bitcoin with the help of Coinbase, reached the market on Feb. 8.
What a Splash
The Tesla purchase did much more than the mysterious sale when it comes to the market. Bitcoin jumped over 10% on the news.
The effect of whales is well-known on the market, and corporate whales are market movers in particular. The effect of companies moving into Bitcoin is a feature of the current bull run, and definitely a factor in the rise of crypto in 2020.
In August 2020, MicroStrategy made its first foray into cryptocurrency. MicroStrategy CEO Michael Saylor became famous as a Bictoin bull because of his conviction that Bitcoin worked as a replacement for the US dollar in corporate treasuries. Since then, companies such as Tesla have turned to Bitcoin in particular as a replacement for a devaluing US dollar.
While corporations are bringing BTC into their treasuries, American investors still have regulatory issues with accessing crypto directly. MicroStrategy has become a proxy for owning BTC directly for some. For others, there is Grayscale Bitcoin Trust (GBTC). GBTC is the largest publicly known holder of Bitcoin at the moment, with over $30 billion BTC under management as of the beginning of February. Grayscale bought Bitcoin equal to 150% of all the BTC mined in January.
Such whales serve an important function in the Bitcoin ecosystem. By keeping demand high, prices are supported. And whale watching can be fun!
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Original Source: Be In Crypto Whales Swim in BTC, ETH, LINK, and BNB, Says Santiment