Reveal spoiler
Bitcoin whales aren’t responsible for volatility, research firm finds
Credits: marketwatch.com
There is a lot of analysis that some of you may be hearing, saying look when the price drops, the Whales buy and somehow that probably proves the point that they're not the ones triggering the price drops.
But yeah probably they are going to buy, and what they are looking at, the largest wallets and the assumption is that those are the only wallets that the Whales possess. So in other words, what if the Whales have one big wallet that they're trying to get for whatever reason, they have purchased Bitcoin into, they may still possess fifty other wallets.
What Are The Whales Going To Do If They Want To Pick Up More Bitcoin
From this article, it sounds like that's exactly what they want to do, they want to pick up more Bitcoin and probably they are going to sell some of their holdings.
Now again this assumption is that, they have one big wallet. Isn't it possible though that the Whales have multiple wallets with Bitcoins they picked up of the exchanges that we can't necessarily see. And if they have picked up Bitcoin and they're holding them in other wallets, they could be selling those smaller quantities off all at once, meanwhile having shorted the market, recovering the price of the Bitcoin drops as they're selling, they are recovering their losses through their shorts when it gets to the place where they've set the stop, they start using other resources to buy those bitcoins back at the cheaper prices.
So, we are only seeing a part of the picture here, and yes the 50,000 bitcoins that were moved into a wallet in August, but we don't know if there was any movement there or not, there's no confirmation.
I think we only have from this research half the picture that we know and this is common sense, that
people with the resources are going to buy the dip.
So, when the dip happens they start buying it, it doesn't mean thought that they didn't trigger the dip and it doesn't mean that they do't have other resources that we can't see.
This is still a complicated conversation trying to understand why we have had these various drops and there's been quite a few and you can look over the last several months and you see a lot of these big drops immediately stopped by a big buy and the question is, Was that the point at which if a Whale was involved in triggering that drop that they planned to buy back in.
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