The major cryptocurrency has seen a steep decline over the past weekend, after crossing over to a truly impressive rally.
Bitcoin hit an all-time high of $ 41.000 before retreating sharply to around $ 35.000 at press time. quotation in real time). The correction raised several questions among retail cryptocurrency investors as they tried to figure out their next move. Fearing that the parabolic rally was about to end, many withdrew their investments.
Better an egg today ...
The thought of taking more losses has prompted many small traders and investors to let go of their market positions. However, a key group of investors have opposed this game, even as the asset continues to lose its value. Contrary to those with small portfolios, whales have moved to acquire more assets during this downturn.
Elias Simos of Bison Trails reported that addresses holding more than 1.000 BTC are on the rise, in support of Santiment's earlier findings published late last year. The upward trend in the number of "whales" persisted until this month. The independent researcher noted that wallets with over 1.000 bitcoins (the equivalent of $ 350 million at the current BTC / USD price) are steadily increasing.
Addresses with more than 1.000 BTC continue to grow at the expense of everyone else, even as this recent recession is having its effects. "While the small investors were selling, the whales devoured their Bitcoins," he said.
Could whales devour small investors?
Crypto analyst Lark Davis said whales could devour small investors. Davis pointed out that whales are good at influencing the market through very clever schemes and have the financial backing to do so.
“There are players in this sector who are very rich and very powerful, but most of all they are very good at manipulating the market in their favor. They are good at playing, right? And they play with billions of dollars of capital at a time, ”he said. “They rock the market with huge sales and at the same time reduce market shares. So when the market is down, they take your Bitcoins that you sold in a panic after a 10% price drop. As they say: rinse and repeat. Rinse and repeat. By earning more Bitcoins and adding new ones to their positions day after day ”.
He asked cryptocurrency investors to be careful when playing games in the market to avoid becoming "whale food". And have you sold your bitcoins or do you still have a full wallet? Let us know in the comments below!
