Money Making Dips
Over the course of last year, Bitcoin had a ridiculous ride with a price incerease nearing $20,000 per BTC. The past week, the amount per BTC has dipped to $5900. This dip affected small time coin traders negatively but had a more than positive impact for the high rollers. The richest bitcoin holders have gained an influx by the thousands more BTC.
All crypto enthusiasts know that these digital assets fluctuate through time and some have learned the ropes with taking advantage of these swings.
Bitcoin whales are individuals or groups of people who holds a lump amount of bitcoin or other currencies that is usually used to make changes in the market. Bitcoin whales are the masters of maneuvering these dips to their favor.
According to Bitinfocharts.com, the richest BTC addresses have not lost any money even with the 65 percent dip.
Gaining more BTC
The richest BTC addresses gained BTC in ten-folds. One owner holds 167,000 BTC. This wallet started collecting bitcoin 2 years ago, based on the first deposit of $840 worth of BTC. At the moment, there is $1.4 Billion worth of BTC that is held in the wallet. This particular address was able to acquire more BTC every time there’s an increase in value.
Most of the wealthiest bitcoin addresses have the same pattern of accumulating more bitcoins during highs and lows, coincidentally at the same time. The top 100 richest addresses have sold thousands of bitcoins at the same time on November and December of last year.
It is speculated that these 1000 richest addresses hold more that 40 percent of the market. In addition, people are suspecting that the so called “Bitcoin Whales” are connected somehow to each other. Managing partner at Multicoin Capital, Kyle Samani stated:
“I think there are a few hundred guys— They all probably can call each other, and they probably have.”
Depicting Wealth Distribution
A research report published some time ago, assumed that 1,000 people own 40% of the BTC market. This has been de-bunked. According to the Bambou Club’s data, most models of the bitcoin wealth distribution usually fails, stating “It is not necessarily 1:1:1”
“For a start, a person may hold many bitcoin wallets. And a wallet can make use of many bitcoin addresses. (Indeed it is advisable to generate a new address every time you use your wallet for reasons of anonymity.) So the relationship can be 1: Many: Many.”