Report: Number of Bitcoin Whales Increases for the First Time Since 2016, But They Are Poorer

According to Decrypt on July 1, a new report from Glassnode shows that the number of Bitcoin whales (large holders of coins) has increased for the first time since 2016, but they are no longer as rich as before.

The number of Bitcoin whales, which are individuals holding at least 1,000 Bitcoins each (worth more than $9 million), has increased for the first time since 2016.

As new whales appeared in the market, the total amount of Bitcoin held by all whales also began to increase, the first time since 2016. But Glassnode also pointed out that "these whales are not as rich as before."

There are now over 1,800 Bitcoin whales, the highest number since 2017.

Where are these “Bitcoin whales” coming from? The following post will provide a better explanation and highlight why I believe this trend is a macro bullish sign for Bitcoin.

(Data @glassnode)

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Liesl Eichholz writes in “The New Bitcoin Whales: Where Do They Come From?”:

“While the number of Bitcoin whales has increased this year, the value of their individual Bitcoin holdings remains well below peak levels.”

She noted that whales’ wealth in U.S. dollar terms reached its highest level during the bull run in late 2017, when Bitcoin’s price approached $20,000.

Today, crypto whales aren’t as wealthy as they once were, with the average wealth per whale declining slightly in 2020.

Average wealth of Bitcoin whales. Source: Glassnode

Glassnode’s Eichholz wrote:

When whales as a group began to accumulate more Bitcoin again, each whale became poorer. The average Bitcoin value held by whales (i.e., the average Bitcoin wealth of each whale) has been declining since 2011 and has not increased substantially in 2020 as the number of whales has increased.

Eichholz said the increase in whales is partly due to whales hoarding more Bitcoin than before, as well as the emergence of new whales who cash out digital assets from exchanges.

Cryptocurrency exchanges have seen a massive wave of withdrawals following the “Black Thursday” crash in March, when the largest cryptocurrency by market value lost more than 20% of its value in less than a day.

This could be because whales are looking to “buy at the bottom and then withdraw their Bitcoin, holding onto it for the long term in anticipation of the next bull run,” the report said.

Eichholz also said in the report that the wealth growth of Bitcoin whales has not been "significant" yet, but if the trend continues, significant results may occur.

The report also stated that the number of bitcoins held by Bitcoin whales has been declining over the past five years, from 6.7 million to 5.2 million, a drop of more than 22%, but more whales have entered the market this year, so their total holdings have begun to rise.

Bitcoin whales also saw their largest increase in dominance of the market since 2011. Eichholz noted that the rise came after nearly a decade of near-constant decline.

One thing is certain: unless we enter the long-awaited bull run, whales will not be as wealthy as they once were.

Disclaimer

The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment or other advice.

This article was translated with permission from DecryptMedia.com