Opinions

Whale Fuelled Bitcoin (BTC) Surge Explained

Bitcoin (BTC), with its wildly swinging temper, has become the monster that no one can control. Its unsuspecting surges and crashes within minutes has been causing easiness in investor circle for long. A similar episode of unexpected blast in price was recorded on Sunday when it gained a sum of $200 in forty minutes.

BTC chart
Source: coinmarketcap.com

With the increase in USD price, a hike in market capitalization was also recorded. Market cap. jumped from $67.5 billion to $71.1 billion. An increase of $3.5 billion in forty minutes.

The primary cause of this hike was ofcourse investor interest. But there was another factor that could be the reason for this hike.

The Damned Whale Movement.

Whales have been a source of hikes and surges in the past too. With large transactions between wallets, investors try to guess the outcome of the movement and correspondingly pump or dump their assets.

A whale movement was reported by Whale Alert, a twitter profile dedicated to real-time tracking of large crypto transactions.

This 9:14 AM tweet of the event may have a connection to the price surge witnessed last night.

Bitcoin (BTC) wasn’t the only cryptocurrency that went through whale movement. Since Friday this week, $273 million in Ethereum (ETH) has been transferred in 21 separate transactions either from or to unknown wallets.

The largest one of these is a transaction of 98,000 ETH (15,380,804 USD) transferred from Bitfinex to unknown wallet.

Combined, this may have been a majority factor in the greens of the crypto charts that have been recorded.

Crypto Charts
Source: coinmarketcap.com

On a sombre note, manipulation and abuse in the crypto markets, a point raised by critics ever so often, has been repeatedly verified because of these whale movements and their effects on market prices and might become a hurdle in crypto adoption in mainstream financial sphere.

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Photo by Fancycrave on Unsplash


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Sarim Mehmood

An electrical engineer to be. Sarim is a blockchain & crypto enthusiast and an early investor in ETH and Ethereum based projects. Contact the editor at editor.opinions@blockpublisher.com

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