Over 150k Bitcoins Accumulated by Bitcoin Whales in 60 Days

bitcoin whale

While the crypto market has been reeling from the sudden slump that occurred in November 2018, bitcoin whales have apparently been increasing their crypto holdings.

This is according to Weiss Ratings. The financial research firm which specializes in asset rating reports that an eye-watering 150,000 bitcoins have been accumulated by crypto whales within the past 60 days. The current valuation of these holdings is at $570 million.

The company recently revealed this via a tweet declaring, “100 largest #BTC wallets (not counting exchanges) have accumulated over 150k worth of #bitcoin during the last 60 days. They did this most likely to sell at peak and then buy back in at the lower price. Good for them.”

Although the agency has neglected to go into the ins and outs of how it arrived at the figure, its ratings are highly regarded due to its market research history. The bitcoin accumulation scenario is likely at this point in time because crypto whales react differently to market movements. While regular enthusiasts obsessively seek out short-term selloff positions, whales look at price dips as opportunities to accumulate more market manipulation power.

This is a major negative that has been echoed by industry experts because it goes against the founding principles of bitcoin. The Satoshi Nakamoto engineered cryptocurrency was originally developed to decentralize currency control from major powers. Overall, greater crypto accumulation by the whales makes the ecosystem less democratic.

The upside is that the whales, through manipulation, will have to pressure the market into bearish positions at some point to make substantial gains. At this juncture, the move will be positive for smaller investors.

That said, however, a market crash instigated by this lot is likely to ensue after crypto prices peak. The group will execute massive crypto selloffs that will overtake demand, subsequently causing a market crash. It is important for investors to factor in these reactive patterns when investing in cryptocurrencies.

Institutional Investors Following Whales

While the crypto sector struggles to break into bullish positions, major investors are still betting on the market. Grayscale, a digital asset investment company reportedly obtained over $230 million in funding from investors last year to add to its cryptocurrency war chest. This is according to figures indicated in its 2018 fourth quarter report.

While $230 million may seem like a measly figure in the blue-chip investment world, such capital inflows morph into sizeable fiat amplifiers in the cryptosphere and help consolidate the aggregate value of all cryptocurrencies.

As per JP Morgan estimates, a capital inflow of just $2 billion in 2017 pushed the overall crypto market cap from a valuation of $15 billion to $250 billion in 12 months. In this case, approximations indicated a 117.5 fiat amplifier.

Of course, fiat amplifier estimates vary widely, especially in times of heavy capital inflows and outflows. This makes it hard to place current values, but still, many analysts believe that they have an impact on overall market nominal value. Current fiat inflows are viewed as an important buoyancy instrument to the overall ecosystem and so the increase in institutional money is a huge positive.

OTC Market Competition for Institutional Investors and Whales Heats Up

While there’s been a decline in retail investor sentiment, venture capitalists, like the whales, are still keen on investing in the sector through OTC platforms. The scenario was echoed by a Morgan Stanley report released late last year.

It underscores the rising demand for crypto OTC desks. And now, major exchanges such as Binance and Bittrex are looking to lure in this high value demographic.

Binance recently announced the launch of its OTC service which will cater to a clientele dealing in transactions exceeding 20 BTC. Deals are finalized using the exchange’s accounts and according to the communiqué, clients can transact in large quantities of digital assets almost instantaneously.

They also get to make transactions in over 80 major cryptocurrencies. Direct settlement and enhanced privacy are touted as key features. The product is set to rival Circle’s OTC suite. The company is considered to be among the market leaders in the OTC segment.

Circle reported a crypto asset trade volume of approximately $24 billion, which was reached within 12 months last year. The agency apparently handled over 10,000 OTC trades in 2018. It currently highlights that its monthly trade volume is in excess of $2 billion. Its clientele reportedly includes miners, project developers, exchanges, and founders.

As competition in the crypto OTC segment heats up, Wirex has mounted a serious service campaign offensive that will see its clients, big and small, gain access to this premium feature. According to the announcement, all Wirex users will be able to enjoy OTC market rates. Funding can be done via credit card or using digital currency holdings.


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Elizabeth Gail is a crypto-enthusiast and blogger. Her specialties include cryptocurrency news writing and analysis. When not writing about crypto, she’s out taking part in humanitarian endeavors across the world. For any news tips or coverage, you can reach out and engage with her on Twitter at @Lizbarret001. You can also email her at [email protected]