Whales just move differently in Crypto
Prior to jump right into how Whales move differently lets review some of the commonly held crypto species sizes and allocations.
- Whales - Hold > 1000 BTC where-as a Humpback: >5000 BTC
- Shark: 500 to 1000 BTC
- Dolphin: 100 to 500 BTC
- Fish: 50 to 100 BTC
- Octopus: 10 to 50 BTC
- Crab: 1 to 10 BTC
- Shrimp: less than 1 BTC
Recently a massive whale sold long standing BTC amounts
Why you might be asking? Let's dive into these two trades and see what we can learn
Last week a whale sold a massive BTC haul 23,000 BTC sold for $2.6 Billion. This move was so large it sparked a flash crash upon BTC. Then the whale turned right around and rotated that capital into a massive ETH purchase 473,000 ETH. Speculating here perhaps they believed BTC had reached its peak and it was time to capture exponential gains in ETH? No statement of direction was issued, just silence as they took their next position. Keep in mind retail investors are still FOMOing into BTC. What does the smart money see that retail does not? Hint most of the large whales accumulated their positions in/around $10. Hmm, $100K vs $10. This is an easy one, even for me to understand.
Tracking the whale wallet we can see the whale, then closed out several long ETH contracts with ETH trading $4,750, netting them a cool $33Million.
What do BTC Whale monitors show us?
Overall, the BTC Whale measurement is still healthy, so not all the whales are heading towards the exits. Inflation is on the upswing which mirrors how US inflation impacted the USA in the 1970's. I believe the whales sold due to hitting their exit pricing range and followed their plan!
Additionally, Michael Saylor’s Strategy, the world’s largest public Bitcoin holder, continues to add more BTC. I wonder is Michael acting as a US Government's Sovereign wealth fund?
Summary
Whales accumulate much earlier than you and sell quietly at or very near the tops. No noise, no ringing of the bells just moving onto their next entry and exit positions. How can you adapt these strategies to better your trading abilities?
Credits - BLOG Image = Coindesk.com = ALL RIGHTS REMAIN!
