Bitcoin whales have become some of the most important participants in the Bitcoin market, with large amounts of Bitcoin (BTC) being bought and sold, thereby significantly influencing the price.

Let’s take a closer look at Bitcoin whales, how they impact the market, and how you can spot them.

What is Bitcoin Whale?

A Bitcoin whale is a person or entity that holds large amounts of Bitcoin and can influence the price with a single transaction.

The widely accepted minimum holding amount for a Bitcoin whale is 1000 BTC. This is a so-called colloquial expression when compared to other “small fish” on the market.

Whales can be individuals or groups that pool their funds and make large investments.

What is the impact of whales?

Bitcoin whales, the biggest players in the Bitcoin market, have enormous influence.

They hold large amounts of Bitcoin, and each transaction has a significant impact on the supply or demand for Bitcoin on exchanges. As a result, it often affects price movements.

Specifically, Bitcoin prices often rise when whales make moves to add to their Bitcoin positions. Conversely, if you sell part of your position, the price tends to fall.

Additionally, whale wallets are mostly tracked, and as a result, the broader Bitcoin trading community often reacts to and imitates whale trades (or anticipated trades). This results in large price fluctuations.

Therefore, some whales prefer to trade directly with other traders using OTC trading desks to reduce their impact on prices.

But some whales trading on exchanges are seizing the opportunity to move the market in their desired direction by showing the market that they are big buyers or sellers.

3 ways to spot whales

Knowing how to spot a Bitcoin whale can be an asset to your Bitcoin trading game, as simple buy and sell orders can impact the market.

Let’s look at three ways to spot a Bitcoin whale.

• Use Blockchain Explorer: With Bitcoin, everyone can access all transactions. Blockchain explorers like blockchain.com can help you identify large amounts of Bitcoin moving around.
• Analyze trading patterns: Whales tend to make large trades, causing prices to plummet or spike. If you pay close attention to trading patterns, the emergence of unusual patterns may signal that a Bitcoin whale is on the move.
• Social media: Some Bitcoin whales are active on social media, sharing investment strategies and opinions on the Bitcoin market. By checking their social media accounts, you can gain some insight into their potential trading activity and use of information.

The largest Bitcoin whales

Looking at the Bitcoin Whale chart, as of July 2023, there are 2,018 wallets with holding balances of 1,000 BTC or more. Some of them continue to hold Bitcoin for a long time.

Let’s take a look at five of the most notable and publicly known Bitcoin whales.

• satoshi nakamoto:The true identity of Satoshi Nakamoto, the creator of Bitcoin, remains unknown. There is no clear evidence whether he is an individual or a group.
  Whoever Satoshi is, he has mined around 1 million BTC and the wallet has remained inactive for years.
• Mr. Changpeng Zhao: The co-founder of Binance, whose estimated assets exceed $10 billion (approximately 1.48 trillion yen, equivalent to 148 yen to the dollar), is one of the top billionaires in the crypto asset industry. Although the specific amount of Bitcoin held is unknown, he has stated in the past that crypto assets account for 95% of his portfolio.
• winklevoss brothers: Brothers Tyler and Cameron Winklevoss started adding Bitcoin to their portfolio in 2012. At one point, they held about 1% of Bitcoin in circulation.
• Michael Saylor/MicroStrategy: Michael Saylor holds approximately 150,000 BTC through business analytics software company MicroStrategy. He is known as one of the most vocal supporters of Bitcoin, especially on his X account, where he promotes the benefits of Bitcoin.
• Mr. Tim Draper: An American venture capitalist, he is known for purchasing 29,656 BTC from the US Federal Security Agency when the assets of the dark site Silk Road were auctioned.
  He opposes government overreach and advocates decentralization. Although his current BTC holdings are unknown, he remains a vocal supporter of Bitcoin.

Understanding the behavior of Bitcoin whales can help you make smart moves in the market. But it’s important to remember that even whales can make irrational and emotional decisions.

Some may even try to manipulate the market for their own benefit. You want to not only track their activities, but also make sure to determine the reasons for their actions before making decisions.

｜Translation and editing: Akiko Yamaguchi, Takayuki Masuda
｜Image: Shutterstock
｜Original text: Bitcoin Whales: What They Are & How to Spot Them?