The biggest winners of Bitcoin’s surge are the BTC whales. Whales are single addresses that contain large deposits of cryptocurrency. The digital asset, which peaked in early January, attracted various investors looking into investing in digital assets. Those who already holdings, like the whales, recorded massive gains, which instigated some to sell their holdings to secure profits.
Most predicted that the all-time high would not last because traders would want to have some profits before the asset’s volatile nature takes its course. Despite the slurp, the top 100 addresses still record an $11 billion profit in the past weeks.
Higher BTC holdings bring bigger profits
Based on statistics, the whales hold a significant part of the Bitcoin market, showing that they have a large holding. Since the digital asset faced a gradual rise in mid-December, whales took the opportunity to increase their portfolio s with a prediction of higher prices. Even though small traders frown at the unexpected drop, sources show that large holders still have attractive profits since the price dropped to $31,000.
Most of the addresses did not sell their BTC even when it started to fall. Surprisingly, lesser than ten addresses sold part of their assets during the peak, and very few even transact with their wallets. The whales are often bullish, keeping the market stable despite the digital asset’s alarming selling pressure.
Although these wallets hold an impressive amount of cryptocurrency, not many are as old as people might think. Most of the wealthiest accounts are relatively new and have not witnessed good bull runs that assure more significant profits. Out of the top 100 addresses, the recently opened ones are just some months old.
Experts predict that if businesses and people open up to blockchain tech, it could promote mainstream adoption within some years. Numerous companies, especially payment firms, support crypto-related transactions due to the growing demand for the services.
Exchanges declare ownership of some whale accounts
Crypto whales are becoming more prominent in the industry as they continue to gather more extensive holdings to enjoy profits. Unknown to many, not only individuals own whale accounts. Some exchanges declare ownership of some whale accounts, top trading platforms like Binance and Huobi. Big firms like MicroStrategy holds an incredible Bitcoin portfolio, showing that numerous firm-owned wallets are also whale addresses.
A notable feature of most whale accounts is that they hardly react to fluctuating prices. They understand how volatile the investment is, which makes them immune to sudden decision-making due to price movements. Smaller holders usually make a fast decision due to their sole ownership of the account, making them the only one who takes risks and enjoys benefits.
An exciting piece of information about the top ten wealthiest Bitcoin addresses is that most of them own billion dollars worth of the cryptocurrency. One of the top-three addresses is not under any trading platform, showing signs that it belongs to the top derivative company, Huobi. Some have not transferred their holdings amongst the large holders, indicating that the owners are incredibly bullish and might not plan to transact with BTC until years to come.