Not Ethereum Whales But Bitcoin Price Movements Affect Ether [ETH] Prices: Report


Ethereum whales
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Not Ethereum Whales But Bitcoin Price Movements Affect Ether [ETH] Prices: Report

A recent report released by Chainalysis has caused a bit of a stir in the cryptocurrency markets. According to their estimate, the ‘whale’ wallets of Bitcoin and Ethereum holds coins worth $35 billion at current prices. The number of whale wallets identified on Bitcoin and Ethereum was 448 and 396 respectively.

No. of Bitcoins held in whale accounts: 3,500,000 (approx.)
No. of Ether [ETH] held in whale accounts: 35,000,000 (Approx.)

Also Read: Bitcoin High Transaction Fees And Inflation Rate Revives the 2017 FUD Again

The numbers are alarming for an average trader as high volume Ether holders currently have 33% of total Ether [ETH] circulating in the market. However, it was observed that large volume ‘hodlers‘ do not move their cryptocurrencies much often. Kim Grauer, a Senior Economist at Chainalysis noted,

“The majority of whales aren’t traders,” she said. “They’re mostly holding.”

Chainalaysis coingape
Chainalysis report weighing the whale movements over the years

At the New York Consensus Week, one of the biggest crypto-conferences, she addressed the more important questions of how these whales affect the prices. The report suggested that whales are practically harmless because they are mostly ‘Hodlers‘ and their sell-off or addition do not affect the demand and supply curve enough to affect the prices. She said in the interview,

“People tend to be a little spooked by these ‘whales’. However, most of the time it is just exchanges moving their coins. Identifying them was difficult.” She added, “But once we’re able to identify the whales. We didn’t actually find any correlation to price. Whale movement impact the intra-day volatility of cryptocurrencies only. “

Further, on the correlation between price movements, she said that they identified that,

“Bitcoin has a causal effect on the Ethereum prices.” The report found, “On average, a 1% increase in Bitcoin prices yesterday leads to a 1.1% increase in Ether prices today. “

Do you think that the distribution disparity will create any problem in the future? Please share your views with us. 

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Not Ethereum Whales But Bitcoin Price Movements Affect Ether [ETH] Prices: Report
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Not Ethereum Whales But Bitcoin Price Movements Affect Ether [ETH] Prices: Report
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A recent report released by Chainalysis has caused a bit of a stir in the cryptocurrency markets. According to their estimate, the 'whale' wallets of Bitcoin and Ethereum holds coins worth $35 billion at current prices. The number of whale wallets identified on Bitcoin and Ethereum was 448 and 396 respectively. 
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Disclaimer The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Author: Nivesh Rustgi

Nivesh from Engineering Background is a full-time Crypto Journalist at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com

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Nivesh Rustgi 444 Articles

Nivesh from Engineering Background is a full-time Crypto Journalist at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com

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