London, UK, 2nd Oct 2021, ZEXPRWIRE –
Whales are the biggest players in cryptocurrency markets today. They own a large number of cryptocurrencies and hence, can control the market price. One of the FinancialCentre’s broker Alex Bergmann talks about how some of the whales have recently entered the market.
According to the broker, a mysterious Bitcoin whale wallet has recently made a huge purchase of 729 coins valued at roughly $31 million in Indian currency. The transaction was done on Monday, and it only took place after the price slump that caused many people to panic sell their Bitcoins for less than what they originally paid out when trading bitcoins back then–even though there were still buyers around who would buy more if you had some leftover from last time’s rally.
The Financial Centre’s broker said a few months ago, a group of whales started buying up Bitcoin. This is when the crypto coin had fallen below $30 thousand (roughly 22 lakhs). With it being such an attractive opportunity for investors and with many people selling their coins off as prices went down; this provided some hope that maybe things would turn around soon enough.
The broker adds on by saying the new owner now owns 112 BTCs worth about 4500 billion dollars or 35805 crores which comes out as nearly half India’s annual GDP. According to the data, whales are taking advantage of a dip in prices and accumulating crypto coins. For example, they bought 408 bitcoins at once just last week when Bitcoin was down 40%.
Financial Centre’s broker says it’s not uncommon for big players on Wall Street or other investors with deep pockets who want exposure but don’t need high yields right away because their money will be tied up for many years often accumulate large amounts during times like these where it is cheap enough that you can buy more than one asset instead if your initial investment was only small percentages from each source.
The broker says the wallet has spent at least $30,000 on Bitcoin since early this morning. As the price increased from around Rs. 31 lakhs today to closeRs 30-lakhs last evening; it was able to purchase an additional 321 coins for about total spending.
The latest transaction happened when bitcoins were traded around 45k (approx). It also bought some of them earlier in another transaction which occurred before the price fell down to some $9000.
Financial Centre’s broker talks about how the wallet has only stopped and started buying bitcoins and some other cryptocurrencies in between since then. The wallet’s balance is currently worth 729 BTC or about Rs 4500 crores.
The broker says that the wallet has previously bought over 3,000 bitcoins in the past. The wallet’s balance had increased to $260 million before this latest transaction happened.
These transactions are not only very large but also reflect changes in price. If someone is buying more than $1million worth of bitcoin within a period of 15 minutes it will affect the price.
The broker adds on by saying that Bitcoin is a volatile investment, and it’s not surprising that people would want to cash in on their gains. Although many might have been tempted by the chance of greater returns earlier this month when Bitcoin was at an all-time high worth $50K or more than 36 lakh rupees (roughly), soon after prices started sliding they lost almost 10 thousand INR less than 7L per coin within two weeks – making some savvy moves profitable again.
No matter the reason, he says these transactions will only make prices rise as more people become aware of Bitcoin and its value. It is a win-win situation for everyone involved as public recognition increases even if cryptocurrency fails to meet expectations now or in the future.
According to the Financial Centre’s broker, Many of such transactions here and there occur frequently using different wallets and it might be difficult to tell who is doing what. However, in case a wallet manages to spend millions in a single transaction, then the chances are that the identity will be easy to uncover through advanced blockchain analytics or by tracking other public addresses that have sent or received bitcoins from this wallet.
He says as the cryptocurrency market is full of speculations, it’s hard to tell how long-term this bearish market will last and what are its effects on the price of cryptocurrencies in general. But as most brokers say, most whales are waiting for the right moment to take advantage of dips in prices so that their staggering investments can multiply with the help of such opportunities.
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