Bitcoin whales have been moving large stacks of Bitcoins at record levels, amid high institutional demand for the world’s most popular crypto asset.
Data from Whale Alert, an advanced crypto analytic tracker revealed someone moved 4,501 BTC (256,327,624 USD) transferred from Coinbase to an unknown wallet.
— Whale Alert (@whale_alert) February 21, 2021
This is triggered by the strong bullish momentum prevailing in the BTC market amid significant gains seen in major altcoins like Stellar, Ethereum, Cardano, and Polkadot.
It’s critical to however understand that tracking Bitcoin wallet activity is not really anonymous because all BTC transactions are kept permanently and publicly on the blockchain or ledger system.
This makes it very easy for anyone to see the transactions and balances of any BTC address.
Normally in the crypto-verse, investors or traders who own a large number of Bitcoins are typically tagged as Bitcoin whales. This means a Bitcoin whale would be an individual or business entity (with a single Bitcoin address) owning around 1000 Bitcoins or more.
The low cost of transferring financial assets when compared to conventional transfer systems such as transfers through commercial banks that may attract up to 1% or more of the amount being used to facilitate the transaction has given Bitcoin a strong edge among large entities.
As BTC whales accumulate BTCs, Bitcoins circulating supply reduces, and this can weaken any bearish trend BTC finds itself in. Meaning that over time, it’s possible that as Bitcoin approaches its fixed supply of 21 million, the price of BTC will go up, with BTC’s present demand factored in.
Bottom line: Although it is difficult to predict market movements, Bitcoin whales have shown historically that they often determine Bitcoin’s trend.