Some speculations have been made regarding Bitcoin and market manipulations, with many assuming that those of the wealthier persuasion are behind BTC’s most important steps.
Whales are traders who hold large quantities of crypto, and Bitcoin whales are naturally among the wealthiest because of the high value of the coin.
Who Owns Bitcoin?
Approximately 40 per cent of Bitcoin owned by about 1,000 users. According to Aaron Brown, former managing director and head of research on financial markets at AQR Capital Management, some of these 1,000 owners may be considering selling nearly half of their shares, he says.
Such whales could also synchronize their market orders or reveal their plans to a select group of equally rich friends beforehand. For years, most of the big BTC owners have known each other, and they can potentially gang together to induce market crashes or booms.
“I think there are a couple of hundred guys here,” said Kyle Samani, managing partner at Multicoin Capital. “Probably they can all call each other, and they probably have.” According to Gary Ross, a securities lawyer at Ross & Shulga, since Bitcoin isn’t a security, there’s no ban on groups joining to buy and push up the price and then cash out minutes later.
Samani is constantly monitoring the trading activity of the addresses belonging to the biggest investors, and when he notices activity, he calls on potential sellers to get the reasons why they intend to sell.
Many funds purchase the crypto from another fund directly, without accessing the open market, so as not to affect the price of the assets they sell. Investors and other investors are usually more transparent,” Samani said. “We all know who one is and we all help each other out and share notes. Just as small investors don’t have the resources to get into hedge funds or have a multi-millionaire in their phonebook, they’re left to guess the whales ‘ motivations and intentions.
Whales can crash prices with even a fraction of their holdings selling.
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