There can be much confusion with today's terminologies since even accounts on Twitter replace terms used to call Bitcoin investors. "Whale" is a term in the financial world that is used not just in crypto but also in stocks and other markets.
What is a Crypto Whale?
The origin of the word whale was initially borrowed from casino gamblers, according to an article by BabyPips. The definition of the word whale means a trader that holds a substantial amount of capital.
Whales are oftentimes bullish of a specific cryptocurrency, and these are referred to as bullish whales. When referring to cryptocurrency, whales in the crypto world are also called Crypto Whales, NOT TO BE CONFUSED with social media accounts of the same name.
How Many BTC is Needed to Become a Crypto Whale?
The real question is, how much substantial capital is enough to call one a crypto whale? As of the moment, a standardized amount has not yet been set, and there is also no "official" threshold when considering a whale. According to an article by Okex, when it comes to Bitcoin, however, 1,000 BTC coins is the most common indication of what "substantial capital" is referred to.
This is usually the bare minimum, and crypto whales usually HODL much higher amounts. Quantifying the needed amount of altcoins to become a crypto whale can be quite tricky since altcoins vary greatly in value. In order to fully understand where the market is going, understanding and tracking whale movement are also very important.
How to Track Whale Movement?
There are certain tools online that can be used in order to track crypto whales and their transactions. One of the most common tools is WhaleBot Alerts on Telegram, which notifies whenever a significant whale transaction has been made.
Why is Tracking Crypto Whales Important?
The reason for knowing the crypto whale mentality is that the major players are also trying to increase their value. It is fair to assume that as a trader, one would still aim to increase the value of his investment, and with the right research and enough capital to move the markets; every move by a crypto whale might just point to something in the market.
A single whale or a group of whales could actually orchestrate a huge crash by selling a number of coins and starting a wider market sell-off. The sudden drop could be enough for other smaller HODLers to go into the FEAR stage and sell off their coins.
An example of this, as reported by Reuters and mentioned on Okex, is on April 2, 2019, when the value of BTC actually jumped from $4,200 to about $5,000 in just two hours! Although it was initially seen as a breakout from Bitcoin's long consolidating chart, Reuters pointed out just a single order of a massive 20,000 BTC that was reportedly executed by three different exchanges.
The purchase was able to move the market and even triggered a rally that saw the crypto asset appreciate by over 240% at the end of June 2021. TechTimes remains impartial to crypto investing and merely reports the movements of crypto whales online, their research, analysis, and opinions regarding the market like those of Mr. Whale on Twitter.
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Written by Urian B.