You often hear about whales selling or stocking up on Bitcoin and other cryptocurrencies. In this article, we explain the term and what makes one qualify as one.
What is a Bitcoin Whale?
A Bitcoin whale is a term given to an individual or group of individuals that handle a wallet that contains a large amount of Bitcoin (BTC). While there is no specific requirement as for the amount of Bitcoin one needs to hold to be qualified as a whale, the amount is often in the hundreds of thousands of Bitcoin.
Such market participants do not trade directly on cryptocurrency exchanges. They usually perform their trader under the radar, coming to specific agreements with such exchanges in order to remain “off the radar”. This process of often referred to as OTC trading (Over-The-Counter trading)
As a result of such actions, the price of Bitcoin is not influenced and remains relatively stable.
Do we know any Bitcoin whales?
Cryptocurrency investors with a very large amount of holdings include hedge funds, Bitcoin investment funds and individuals that have managed to keep their identity private. Aside of that, there are a few individuals that are known to hold considerably large amounts of the most popular cryptocurrency.