Tuesday, May 30, 2023

The influence of large investors increases the price of bitcoin

Key facts:
  • Bitcoin whales, dolphin sharks dominate the market.

  • The price of BTC is now “more sensitive to the actions of big players”: CryptoQuant.

  • The biggest bitcoin (BTC) investors, known as whales, sharks and dolphins, have allowed themselves. Now they control most of the bitcoins circulating in the market, so their movements have more influence on the price of the crypto asset which, at the time of writing, is trading at USD 26,900.

    Clearly, these investors control 61% of all bitcoins that have been issued so far. And from this kind of whale they are very powerful. This data is based on the output of the transaction void from the CryptoQuant explorer.

    The scout indicates that dolphins, who are investors who have 100 to 500 BTC, and sharks, who have between 500 and 1000 BTC, control 29.57% of the market. Meanwhile, it notes that the whale, which has raised more than a thousand BTC, commands 31.57% of the market.

    The bitcoin market is largely under the control of large investors. Source: CryptoQuant

    In this way, the market has become “more sensitive to the activities of large participants”, explained CryptoQuant. He elaborated that “when such players buy or sell large volumes of bitcoins, they can cause significant price fluctuations.”

    Bitcoin is the richest single market

    The data firm also confirmed that the whales were divided into 4,151 wallets, which means that the largest bitcoin holders are a select group of investors. “This may suggest that cryptocurrencies are still relatively specialized investment instruments,” he assessed.

    In turn, the researcher points out that this scenario means “there is potential for further growth and greater participation of small investors”. Although currently these actors do not have as much control over the amount of bitumen as the big investors, since they represent the smallest part of the market and even less the amount of money they would move.

    However, it should be noted that the number of small investments has increased, as reported by CryptoNews. This comes as the number of large investors, especially investors, declines according to Localintobitcoins. Therefore, if this trend continues, the government may reduce the price of the largest market participants.

    Nation World News Desk
    Nation World News Deskhttps://nationworldnews.com/
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