Fun

Bitcoin whale watching is 'useless' for information — Traders

News Feed - 2024-06-16 11:06:40

Ciaran Lyons6 hours agoBitcoin whale watching is "useless" for information — TradersBitcoin whale watching is “good for social media” but not for valuable analysis, according to traders.4296 Total views42 Total sharesListen to article 0:00NewsOwn this piece of crypto historyCollect this article as NFTJoin us on social networksTracking the wallet movements of Bitcoin (BTC) whales — a Bitcoin holder with a significant stake compared to smaller investors — will not lead to “true alpha,” according to traders, despite the metric used as a popular way to speculate on market sentiment for some time.


“Don"t whale watch kids, it"s not useful information,” onchain analysis firm Glassnode lead analyst James Check aka “Checkmatey” wrote in a June 15 X post.


“Not once have I seen true alpha extracted from whale watching. It"s good for social media, but is almost never serious nor valuable analysis,” he added.


It is a common belief among crypto traders that Bitcoin whales with substantial Bitcoin holdings are capable of influencing the market through their trading tactics.


While they can have influence, whale’s movements can be interpreted in different ways, so the data never provides a definitive indication.


For example, dormant addresses with large holdings suddenly becoming active could suggest selling, particularly if they go into an exchange deposit address.


Pseudonymous crypto analyst TXMC, host of YouTube channel Alpha Beta Soup, warned "against using "whale" metrics and making declarations about them,” in a June 15 X post.


They explained that when large amounts of Bitcoin are being sold by whales in a short period of time, it doesn"t always indicate a sell-off is happening.


“The mechanical stepwise drawdown here speaks to wallet mgmt and you are only seeing part of a larger pie. These are sometimes firms & institutions with multiple wallets and hundreds/ thousands of clients,” they claimed.


“Data around these entities is notoriously noisy, and I can almost guarantee that the big "whale" wallets you"re watching are ETFs, and exchanges,” Check explained in a May 7 post.


“Cheap engagement bait in my honest opinion,” he added.


Social media posts covering whale movements tend to generate significant interest.


Related:Bitcoin price preps for ‘bigger move’ as on-chain metrics ‘reset’


A recent post by pseudonymous crypto trader Marty Party discussing Bitcoin whale activity garnered over 205,000 views.


“Bitcoin OG whales have sold over 50,000BTC in the past 10 days, totaling approximately $3.30 billion,” Marty Party wrote on June 14.Analysts use the data to point out when whales have different thoughts on market


Analysts who cite Bitcoin whale movements often provide graphics to compare the activity over time.


“While you are scared, whales just bought $1.3 billion worth of Bitcoin,” Bitgrow Lab founder Viviek Sen wrote on June 14 along with a graphic extracted from crypto analysis firm CryptoQuant.Source: Vivek


However, other analysts still look to whale movements to gauge the market"s direction.


On May 15, CryptoQuant said that Bitcoin whale demand is again in “acceleration mode” following a two-month downtrend.


“Bitcoin demand growth seems to be stabilizing after being in a decelerating trend since March,” it said.


CryptoQuant cited the data to claim that demand would need to accelerate further to sustain this price rally.


Magazine:‘Bitcoin Layer 2s’ aren’t really L2s at all: Here’s why that matters# Bitcoin# Cryptocurrencies# Bitcoin Price# Bitcoin Analysis# Adoption# Cryptocurrency Exchange# RegulationAdd reaction

News Feed

Estonia Revokes More Than 1,000 Crypto Firms’ Licenses This Year
Estonia Revokes More Than 1,000 Crypto Firms" Licenses This Year Over 1,000 cryptocurrency firms’ licenses have been revoked in Estonia this year as the co
Hacker mints 1B tokens in $16M Curio smart contract exploit
Ezra Reguerra12 hours agoHacker mints 1B tokens in $16M Curio smart contract exploitCurio said it will conduct a fund compensation program for affected liquidity providers, which could potentially take up to one year to
What the Bitcoin halving means for BTC mining centralization
Robert D. Knight9 hours agoWhat the Bitcoin halving means for BTC mining centralizationThere are concerns that the halving may be bad news for mining decentralization.3371 Total views4 Total sharesListen to article 0:00A
Why Bitcoin Wins No Matter The Outcome Of Trump’s Trade War
Este artículo también está disponible en español. In an escalation of global economic friction, President Trump’s imposed tariffs have roiled financial markets this wee
Janet Yellen Reveals Plans for Bitcoin — Sees Cryptocurrencies Used Mainly for Illicit Financing
Janet Yellen Reveals Plans for Bitcoin — Sees Cryptocurrencies Used Mainly for Illicit Financing Janet Yellen, Joe Biden’s pick for the Treasury Secretar
Decentralized Cloud Network Service Sukhavati Network Announces SKT Listing on Gate.io and MEXC
Decentralized Cloud Network Service Sukhavati Network Announces SKT Listing on Gate.io and MEXC sponsored Sukhavati Network is to host its startup sale on Gate.io
Report: Crypto Exchange Binance in New Partnership that Seeks to Deepen Crypto Adoption in Africa
Report: Crypto Exchange Binance in New Partnership that Seeks to Deepen Crypto Adoption in Africa In what has been described as a collaboration that will deepen crypto adoption, th
Save the Children Senior Advisor: We Chose ADA Because Its Backed by the Cardano Foundation
Save the Children Senior Advisor: We Chose ADA Because Its Backed by the Cardano Foundation In July 2021, the non-governmental organization (NGO) Save the Childr
Brayden Lindrea9 hours agoAI can be used in ‘every single process’ of JPMorgan’s operations, says CEOJPMorgan’s CEO Jamie Dimon pointed to trading, hedging, research and error detection as some of the processes t
Crypto-friendly Switzerland Outclasses U.S. as Facebook Libra’s Regulator
Switzerland crypto laws have appealed to blockchain enthusiasts for years. Facebook’s head of blockchain, David Marcus, is no exception. He released a statement announcing that he expects the new coin to be govern
Bitcoin In Peril? Expert Warns Of China’s Alleged Scheme To Crash BTC To $40,000
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
Mark Cuban Wants an Expiration Date on Stimulus Checks: Critics Says Proposal Is Right out of a Banana Republic Playbook
Mark Cuban Wants an Expiration Date on Stimulus Checks: Critics Says Proposal Is Right out of a Banana Republic PlaybookU.S. billionaire Mark Cuban wants the next stimulus check to