LikerCoin Bitcoin & Cryptocurrency

Bitcoin Whale Alarm: Bitcoin Whale sends 4,000 BTC on Bitstamp – Does the new price drop follow?

After a short rest period the monsters of the Crypto Seas seem more active than ever. So it’s not only Bitcoin Whales but also Altcoin Whales who make the courses their plaything. Only yesterday we reported several times about Ethereum Whales, who have driven the prices up and down in the order books of Binance and Bitstamp.

But now the Bitcoin Whales have also made some progress again and so a Bitcoin Whale on Bitstamp has probably started to wait again and transferred 4,000 BTC to the stock exchange. There are many open questions:

  • So after the Bitcoin Pump, is the next break-in coming right away?
  • Why are whales so dangerous?
  • What do BitMEX and Bitstamp have to do with it?
  • Is BTC legal in France?

Yesterday 2 Bitcoin Whales made the seas restless and caused the Whale Watchers to scream, because with 15.000 BTC each the sighted Whales are real heavyweights. In one transaction 15,000 BTC were sent from one foreign address to another. So together 30.000 BTC, about 300 Mio. USD, which both Bitcoin Whales bring on the scales.

Another reason for enthusiasm about how easy it is to send so much money from A to B in the Bitcoin network. The community enjoyed the transactions and put itself in the position of the whale, which must have had a high pulse, checking the recipient address. Sure, but not beginners.

Apart from that, there’s nothing remarkable about these transactions, except that both could belong together and could represent a massive OTC deal. A deal where, as I said, 30,000 BTC could have changed hands. However, there is no reason to worry about renewed price slumps at Bitcoin. For this danger a completely different whale could provide.

Bitcoin Whale places 4,000 BTC on Bitstamp – another dump risk?

In addition to many smaller whale transactions, the transaction of 4,000 BTC on Bitstamp caused a stir. These 4,000 BTC now float like a sword of Damocles above the Bitcoin price, because nobody knows when the Bitcoin whale will strike and whether it will strike at all.

In recent weeks and months, it has always been such transactions that have caused unrest in the waters. Even though many whale watcher are enthusiastic about it, these manipulative whale moves hold some dangers. If and when the whale will strike now knows only he himself, but you should keep an eye on BitMEX, I also explain why.

Why BitMEX and Bitstamp play an important role in whale movements

Not for the first time a Bitcoin Whale or Crypto Whale threatens the market. As described, there have been more attempts in recent weeks and months to interpret the market in its favour. In the main role, the Bitcoin Whales, which build up their positions before accordingly with BitMEX. This is no silver hat theory but fact, the Bitcoin & Crypto market is still in a grey area where all limits of manipulation are explored.

Bitstamp has often experienced this manipulation with overfilled order books and price slumps. The reason is a relatively low liquidity in the order books. So if a Bitcoin Whale fills the order book with 4,000 BTC on the sell side, there are too few buy orders in it to absorb the price. So there are price slumps every now and then.

But why Bitstamp? It hits Bitstamp again and again, because this is one of the 3 exchanges that determine the price for Bitcoin on BitMEX and thus the underlying value of the Bitcoin Futures (Long & Short). 33% of the price is thus determined by Bitstamp, if Bitstamp collapses a lot of futures may be liquidated. The other two price providers are Kraken and CoinbasePro.

Bitstamp itself is annoyed by these strong price fluctuations and movements on its stock exchange. Therefore, you have already launched an investigation into a price manipulation on May 17.

Price Manipulations, Wild West Capitalism and the Game with the Whales

As already described in yesterday’s course update, it shows once again that the whales, be it a Bitcoin or an Ethereum whale, have the scene fully under control. Price manipulations are unfortunately part of the daily routine, although it is still exciting to watch how Whales move such masses of money as easy as child’s play.

This is one of the main reasons that has prevented us from seeing a Bitcoin ETF or other financial products. For this reason, many institutional investors cannot participate in the crypto market. A Henne Ei problem, because without more money and a larger distribution in the market the manipulation by Whales will hardly be prevented.

Whether stronger regulations are a solution or not should be assessed and decided by politicians and regulators. The market can certainly regulate itself, but we are still a long way from that. Because despite the high volatility the Bitcoin price is pointing upwards, the fluctuations are then an evil, which I gladly accept.

Our tip: Invest with the cost average strategy or make your own investment plan. Then you can sit back and relax and enjoy the ride.

At this point it should be said that we never make a trading recommendation. The information presented is not intended to cause panic or propagate world conspiracy. They should inform and broaden your perspective on Bitcoin & Co.