Whale

What Is a Whale?

Whales are often viewed as the opposite of small cryptocurrency holders, known as fish or minnows, who have limited influence on market prices.

On the contrary, whales are a select group of individuals and organizations who possess a significant amount of cryptocurrency, capable of impacting its spot price in the market.

They exert notable influence, especially during periods of low liquidity or high volatility.

Notable figures in the Bitcoin industry who are considered whales include Satoshi Nakamoto, the founder of Bitcoin, and Tyler and Cameron Winklevoss, the co-founders of Gemini exchange. From an institutional standpoint, Tesla and MicroStrategy are prominent names on the list, collectively owning hundreds of thousands of Bitcoin.

Large holders of BTC are often referred to as whales because they disrupt the smooth operation of smaller BTC holders in the market.

According to the Pareto Principle, the top 20% of BTC owners hold more than 80% of its value in terms of dollars.

Bitcoin whales often set trends for speculation that smaller BTC holders follow, leading to a cycle where BTC fundamentals become disconnected from the fundamental drivers of cryptocurrency markets.

In certain cases, the true identity of specific Bitcoin whales remains unknown.

In 2019, Australian businessman Craig Wright faced a lawsuit alleging that he held over 1.1 million BTC.

Market watchers have speculated that Craig Wright may be the real identity behind the mysterious Satoshi Nakamoto.

Craig Wright claims to have collaborated with his friend Dave Kleiman in the creation of Bitcoin.

Significant movements of BTC, particularly from older cryptocurrency wallets, often trigger speculation of Satoshi Nakamoto’s activity.