What Is a Crypto Whale?
A cryptocurrency whale, more commonly known as a "crypto whale" or just a "whale," is a cryptocurrency community term that refers to individuals or entities that holdlarge amounts of cryptocurrency. Whales own enough cryptocurrency to influence currency markets.
Achieving whale status in the cryptocurrency space is subjective. The community seems to agree that ownership of a large amount of circulating cryptocurrency qualifies as a whale. Learn how these large accounts can influence cryptocurrency investors and the market.
Key Takeaways
- A crypto whale is a wallet address that holds a significant amount of cryptocurrency.
- The community and investors watch crypto whales because they can significantly influence price movements.
- Whales can also create price volatility increases.
- Some publicly-known crypto holders with large amounts of cryptocurrency include Tyler and Cameron Winklevoss, Michael Saylor, and Brian Armstrong.
Understanding Crypto Whales
Large cryptocurrency holders are called whales because whales are very large compared to the smaller fish in the cryptocurrency ocean. Four bitcoin wallets owned 2.81% of all the bitcoin in circulation in June 2023, according to BitInfoCharts, and the top 100 wallets held more than 15% of all bitcoin.
Dogecoin, a meme coin that became popular, is even more centralized. Fourteen addresses accounted for nearly 75% of Dogecoin in June 2023: about 70 billion coins.
These large accounts are closely monitored by the crypto community and investors. It's publicly announced on the Whale Alert website and on its Twitter account if any of the top 100 wallets make transactions.
Another term that has emerged is "crypto minnow." These are wallet addresses that hold very little cryptocurrency compared to their whale counterparts.
A Whale's Effect on Liquidity
Whales can be a problem for cryptocurrency because they're high-profile wallets and because of the concentration of wealth, particularly if it sits unmoved in an account. It lowers that specific cryptocurrency's liquidity when coins sit in an account rather than being used because there are fewer coins available.
A Whale's Effect on Price
Whales can also create price volatility increases, especially when they move a large quantity of cryptocurrency in one transaction. For example, The lack of liquidity and large transaction size creates downward pressure on Bitcoin's price if an owner tries to sell their bitcoin for fiat currency because other market participants see the transaction. Other investors go on high alert when whales sell, watching for indicators that they're "dumping" their holdings.
A common sign crypto investors watch for is the exchange inflow mean, or the average amount of a specific cryptocurrency being deposited into exchanges. If the mean amount of coins per transaction rises above 2.0, it means that whales are likely to begin dumping if it correlates to a large number of whales using the exchange.
The price is influenced not only by the inflow mean, but also by the publicity given to a particular whale's transaction. Bitcoin prices only respond to transactions involving large amounts of cryptocurrency when they're publicly announced on Twitter by Whale Alert.
What Crypto Whales Mean to Investors
There are many circ*mstances in which someone with a large amount of cryptocurrency could move their holdings. It should be noted that movement doesn't always mean that a whale is selling off their holdings. They could be changing wallets or exchanges, or making a large purchase.
Sometimes whales may try to sell their assets in smaller amounts over a more extended period to avoid drawing attention to themselves. They can produce market distortions, sending the price up or down unexpectedly. This is why investors watch the known whale addresses to look for the number of transactions along with their value.
Frequently Asked Questions
Who are the big whales in crypto?
Some of the publicly-known crypto holders with large amounts of cryptocurrency are Sam Bankman-Fried, Michael Saylor, and Brian Armstrong.
What does "whale" mean in crypto?
A whale is someone who holds a large amount of a specific type of cryptocurrency. It could also mean someone who owns large amounts of several types.
Do whales manipulate crypto?
Actions taken by crypto whales are closely watched by investors. Whether they act intentionally to manipulate prices is difficult to say, but they can cause prices to rise and fall because of the interest others take in their holdings.
How much is a crypto whale?
The definition is subjective and it varies by cryptocurrency. Whales generally hold a large number of coins available for a specific currency.
The Bottom Line
It's a good idea to pay attention to what the whales are doing if you're a crypto investor, but movement doesn't necessarily mean you should panic. Many whales are business owners who have invested heavily in cryptocurrency. These might be the ones who are worth observing if you're going to whale watch. Keep an eye on the known whale addresses to track whale transactions and their values. They're publicly announced on the Whale Alert website and on its Twitter account.
Investing in cryptocurrencies and other Initial Coin Offerings (“ICOs”) is highly risky and speculative, and this article is not a recommendation by Investopedia or the writer to invest in cryptocurrencies or other ICOs. Each individual's situation is unique so a qualified professional should always be consulted before making any financial decisions. Investopedia makes no representations or warranties as to the accuracy or timeliness of the information contained herein.
FAQs
Cryptocurrency Whales or crypto whales are individuals who have a large share of a cryptocurrency's supply, enough to manipulate the valuation of a cryptocurrency. Normally, cryptocurrency was created to reduce the influence of centralized and financial organizations on the flow of money.
How do crypto whales affect the market? ›
Crypto whales can put a sizable sell order by dumping large orders at a low price and controlling supply and demand. This causes a price decline, which sets off a chain reaction of hysteria that makes the market increasingly erratic.
What is a crypto whale? ›
A cryptocurrency whale, more commonly known as a "crypto whale" or just a "whale," is a cryptocurrency community term that refers to individuals or entities that hold large amounts of cryptocurrency. Whales own enough cryptocurrency to influence currency markets.
How does crypto affect the market? ›
Market Performance
Cryptocurrency and stock markets are favourably associated. As a result, volatility in the crypto stock markets will influence stock market performance.
Are crypto whales good or bad? ›
With significant crypto holdings at their fingertips, whales have the ability to influence the market by buying or selling large amounts of assets, causing price fluctuations. In the crypto world, whales are often associated with high levels of volatility.
How is the market manipulated by whales? ›
Market Manipulation
In a pump-and-dump scheme, whales buy large quantities of Bitcoin, driving up the price. Once the price reaches a certain threshold, they quickly sell off their holdings, causing the price to plummet. This allows them to profit from the price surge while leaving unsuspecting investors with losses.
How do whales affect price? ›
Contrary to the “sell wall” effect, whales often artificially inflate the prices of the tokens by putting in huge buy orders. They create a desire for the cryptocurrency tokens, thus urging people to raise their bids.
How much crypto is considered a whale? ›
Generally, someone owning at least 10 percent of a given cryptocurrency can be considered a whale. Others deem whale status to any crypto wallet that holds upwards of $10 million in a single cryptocurrency, or even a minimum of 1,000 BTC.
How many whales are in crypto? ›
Mega whales and minnows
There are just 117 mega whales, fairly close to the historical highs of 123 in November 2022, and 126 in October 2018.
What are crypto whales investing in? ›
As May draws near, crypto whales appear to be taking bullish positions on certain altcoins. Cryptocurrencies like Cardano (ADA), Render (RNDR), Chiliz (CHZ), and Litecoin (LTC) have recently attracted considerable investment from large institutional investors.
What can cause a crypto crash? Crypto prices can be dramatically affected by major events, such as exchanges or coins crashing. They can also sink with higher interest rates, rising inflation and other macroeconomic factors that can affect how confident people feel investing their money in risky alternative assets.
What drives the crypto market? ›
Supply and demand are what ultimately drive crypto prices up or down. The key factors can be further described as related to fundamentals, macro, sentiment, and technical forces.
Does crypto go up when stocks go down? ›
Many of the factors that affect stock prices also affect cryptocurrency prices. Investors and traders treat cryptocurrency the same way they treat stocks, so prices tend to trend the same.
Who are the biggest whales in crypto? ›
Individual Bitcoin Whales
The pseudonymous founder of Bitcoin, Satoshi Nakamoto, currently has 1 million BTCs in his kitty (worth around $27 billion at present), making him one of the biggest Bitcoin whales in the world.
What is the most held crypto by whales? ›
Paul L. In the world of cryptocurrency, Bitcoin (BTC) and Ethereum (ETH) remain the largest digital assets based on market capitalization and are known to dictate the trajectory of the entire market.
Who is the top crypto holding by whales? ›
1. Satoshi Nakamoto. Undoubtedly the biggest cryptocurrency whale in the world, Satoshi Nakamoto is the pseudonym for the inventor of Bitcoin.
What are 4 current major threats to whales? ›
Introduction. Threats to whales include commercial whaling, pollution, ozone depletion, global warming an whale watching.
What is the biggest threat to whales currently? ›
Entanglement. Entanglement represents a significant threat to many marine animals, including humpback whales in Hawai'i. It has been estimated that hundreds of thousands of whales die each year worldwide as a result of entanglements.
Why is whaling so profitable? ›
At its height, the whaling industry contributed $10 million (in 1880 dollars) to GDP, enough to make it the fifth largest sector of the economy. Whales contributed oil for illuminants, ambergris for perfumes, and baleen, a bonelike substance extracted from the jaw, for umbrellas.
How much money do you have to spend to be considered a whale? ›
5th Planet Games, a developer of social games for both casual and hardcore audiences, starts classifying its players as whales when they spend $100 or more a month.
Over a thousand whales are killed every year because some people want to make money from selling their meat and body parts. Their oil, blubber and cartilage are used in pharmaceuticals and health supplements. Whale meat is even used in pet food, or served to tourists as a 'traditional dish'.
What percentage of Bitcoin belongs to whales? ›
These wealthiest 112 addresses account for 12.32% of the total supply. Bitcoin addresses with 10,000 or more bitcoin are sometimes referred to as whales. ➤ Learn more about the top 100 richest bitcoin addresses.
How do you know if whales are buying crypto? ›
You can see what crypto whales are buying by using tools like Whale Alert, Dex Check and Etherscan to identify crypto whales. Then, you can add their addresses to platforms such as DeBank or Zerion to easily track their on-chain portfolios and transactions.
How much Cardano is considered a whale? ›
WHALE to Cardano
| WHALE | ADA |
|---|
| 1 WHALE | 1.60 ADA |
| 5 WHALE | 8.045 ADA |
| 10 WHALE | 16.091 ADA |
| 25 WHALE | 40.22 ADA |
7 more rowsWhales are people or organizations who own large amounts of crypto. Whales can manipulate the market with their massive wealth. Sell walls decrease a coin's price, allowing whales to make cheap purchases. Buy walls force investors to increase the price of a coin that a whale owns.
How do crypto whales store their crypto? ›
Whales Store Crypto in Multi-key Wallets 🔐
Multi-key wallets are the safest way to store crypto and reduce the risk of lost seed phrases and phishing scams. All whales store crypto using multi-key wallets.
Will crypto go back up in 2023? ›
Will Bitcoin Come Back in 2023? It is impossible to predict the future of the crypto market with absolute certainty, but it is reasonable to assume that Bitcoin will come back in 2023. Blockchain technology will likely be further enhanced during this time, improving scalability and transaction speeds.
Why is crypto crashing 2023? ›
The prime reason for the market downturn is the downfall of one of the largest global cryptocurrency exchanges, FTX. FTX's bankruptcy, and its spat with Binance, has not only triggered a huge sell-off in the market but has also reduced liquidity from the crypto market.
What will crypto be worth in 5 years? ›
Bitcoin (BTC) Price Predictions
| Year | Minimum Price | Average Price |
|---|
| 2023 | $30,833.76 | $35,972.73 |
| 2024 | $51,389.61 | $56,528.57 |
| 2025 | $77,084.41 | $82,223.37 |
| 2026 | $102,779.22 | $107,918.18 |
5 more rows5 days ago
Bitcoin is neither issued nor regulated by a central government and therefore is not subject to governmental monetary policies. Bitcoin's price is primarily affected by its supply, the market's demand for it, availability, competing cryptocurrencies, and investor sentiment.
Simply put, the price of Bitcoin goes up when demand for Bitcoin goes up, and the price goes down when there is less demand for it.
What backs cryptocurrency value? ›
But Bitcoin isn't actually backed by anything physical—only the complicated mathematics underlying its blockchain technology and controlled supply. This ensures Bitcoin remains limited in supply and is resistant to censorship—which imbues it with some of its value.
Do you buy crypto when its up or down? ›
Cryptocurrencies like Bitcoin can experience daily (or even hourly) price volatility. As with any kind of investment, volatility may cause uncertainty, fear of missing out, or fear of participating at all. When prices are fluctuating, how do you know when to buy? In an ideal world, it's simple: buy low, sell high.
Will crypto crash if the market crashes? ›
Nolan Bauerle, research director at CoinDesk, says 90% of cryptocurrencies today will not survive a crash in the markets. Those that survive will dominate the game and boost returns for early investors.
Is it good to buy crypto when the market is down? ›
While falling prices can be cause for concern among investors, they can also make for great buying opportunities. This is especially true for higher-priced investments, and buying during a downturn can make them more affordable.
Which government owns the most Bitcoin? ›
- The United States government has now surpassed MicroStrategy and Tesla as one of the largest holders of Bitcoin, with over 205,000 BTC in its possession, Dune data on March 27 shows. ...
- According to trackers, MicroStrategy holds 132,500 BTC while Tesla owns 10,725 BTC, less than what the United States government controls.
XRP. Ripple's institutional adoption would increase tremendously once the SEC lawsuit is settled, making XRP one of the top 10 cryptocurrencies to buy in May 2023.
What is the largest traded crypto? ›
How many whales own Dogecoin? ›
According to the list of Dogecoin's most avid investors shared by Bit Info Charts, there are now 535 wallets with more than $1,000,000 in Dogecoin. Around 62 holders possess more than $10,000,000 in Dogecoin, making them prominent members of the Dogecoin whale list.
Who invented the Bitcoin? ›
Key Takeaways. Satoshi Nakamoto is the pseudonym used by the creator or creators of Bitcoin. The identity of Satoshi Nakamoto is not publicly known. One of the first major public investigations ended with Dorian Nakamoto being identified as Bitcoin's creator, but he continues to decline the claim.
Paul L. In the world of cryptocurrency, Bitcoin (BTC) and Ethereum (ETH) remain the largest digital assets based on market capitalization and are known to dictate the trajectory of the entire market.
Where do crypto whales store their crypto? ›
Exchange-to-wallet For security reasons, crypto whales prefer to use cold wallets to store their crypto assets if they don't want to sell them in short term. So if they withdrew certain crypto assets from exchange to their own wallets indicates that the supply of these certain crypto assets is reduced.
What's the purpose of a crypto whale tracker? ›
Crypto whale trackers are tools that allow users to see transactions made by whales and use that information to inform their own trades. For example, if a crypto whale is moving a large number of coins to a cryptocurrency exchange, that could be an indication that they are getting ready to sell their coins.
What cryptos are whales holding? ›
ADA, LTC, CHZ, and RNDR are among the leading cryptos drawing the attention of crypto whales in recent weeks.
How much money do you need to be a whale? ›
5th Planet Games, a developer of social games for both casual and hardcore audiences, starts classifying its players as whales when they spend $100 or more a month.
Who owns the most Bitcoin? ›
The largest holder of Bitcoin is believed to be Satoshi Nakamoto, the pseudonymous founder of Bitcoin. Nakamoto is estimated to own approximately 1,000,000 BTC, worth around $27.13 billion.
What happens when a crypto hits max supply? ›
The maximum supply of a cryptocurrency refers to the maximum number of coins or tokens that will be ever created. This means that once the maximum supply is reached, there won't be any new coins mined, minted or produced in any other way.
How do you identify a whale in crypto? ›
To identify whales, you can
Monitor the wallet addresses of the largest holders as well as exchange wallets — to stay alert of any significant shifts in cryptocurrency. Monitor order books. If you suddenly witness larger-than-normal buy orders, there may be a whale in play.
What wallet do whales use? ›
Multi-key wallets are the safest way to store crypto and reduce the risk of lost seed phrases and phishing scams. All whales store crypto using multi-key wallets. So how does that work? While most crypto wallets are secured by one seed phrase only, multi-key wallets are protected with multiple keys.
Where do most people store their crypto? ›
Most popular exchanges like Binance, Coinbase, CoinSpot and eToro are run like any other online platform (that is, they don't leverage the blockchain and are considered 'centralised'). This is also why they're popular: they're user-friendly and convenient.
Bitcoin adds a new block to the ledger about once every 10 minutes. This means that, on average, about 144 transaction blocks are added to the blockchain every day. Because miners are rewarded 6.25 BTC per block, about 900 BTC coins are minted each day.
How does whale tracking work? ›
Suction cups hold the device to a whale's back, where it records data such as depth, water, temperature, and underwater sounds. These tags can be used on many species of whales, including blue whales and humpbacks, and other versions have been used to study many other ocean animals.
