As a participant in the Crypto industry, you must have heard terms like Crypto sharks or whales. Well, these are the giant investors who invest funds in large amounts in the industry. Also, they influence the price movements of the Cryptos and so, the market depends on them. You can check basic features of digital currency.
Considering this, if we notice the rise of sharks for a particular Crypto, it means that Crypto will face a rising demand. But, in recent times, this is not the case. Bitcoin sharks are exiting this market and are disappearing quite fast! With this, investors are now afraid that the rates of BTC will further go down. Read this blog to see what happens if Bitcoin sharks disappear!
Who Are These Sharks?
These trends are quite often heard in this industry and you may wonder what these are. Crypto Sharks or whales are the traders with a huge capital investment in this market. Though whales are the largest investors among all, sharks hold an influential position too. They come in the second largest position after the whales.
An investor who invests large sums of funds in Cryptocurrencies is called Crypto sharks. If we see in the case of Bitcoin, the rich entities holding BTC in large amounts, are BTC Sharks! So, they can operate on the Cryptocurrency market and exchanges as well.
A Decline In The Number Of BTC Sharks
As per the latest news, influential sharks are exiting the industry. The largest of such Bitcoin sharks are declining in number every day. This decline is by about 80% in a single year. This fact shows that the big traders are leaving the market due to its present condition.
The ongoing bearish phase and other turmoils of the market are making it tough for the sharks to survive. These huge investors are facing a downfall in the industry and are unable to survive further losses.
All these factors are leading to a decline in the number of BTC sharks. Apart from this, the whales are avoiding this Crypto for some time now. This indicates the deteriorating condition of Bitcoin and the Crypto market as a whole!
What Does Data Reveal?
Glassnode, an analytics firm, has been collecting data on this aspect. Its recent data reveals that there are around 23,000 Crypto wallets left in the market with 1 million USD or more worth of BTC. Experts and analysts are predicting that this is a sign that BTC’s condition is declining.
Earlier to this uptrend, BTC was present at the rate of 19,666 USD. And, by the end of 2017, it was around 13,880 USD, which is a huge decline! At present, it is around 16,746 USD.
And, Peter Brandt, a famous investor, forecasts that its rates can even touch zero. In addition, the collapse of the FTX is a major reason for the declining condition of this coin.
Last year, there were around 1,13,898 wallets holding Bitcoin in large amounts. But, the present number stands at 23,000 wallets! Investors are trying to sell off their BTC as the prices may further go down and they don’t want to face losses. Another study shows that about three-quarters of the traders who hold BTC face losses! This study was done on 95 nations for over 7 years.
Other Observations About The Market
Apart from these, the entire scenario of Bitcoin looks a bit different, as per the observation of Cointelegraph. After the crash of FTX, a mixture of digital wallets has come together.
Also, the co-founders of Decentrader, indicated that the exchange users are consolidating their wallets. Also, the users are withdrawing their cash to store in other storages. This will be higher for those wallets which have around 1 Bitcoin or more.
Not only the traders, but miners are trying hard to survive in this market as well. But this pressure on the miners has adverse impacts on the hash rates. This, in turn, affects the transactions on this network!
With the present bearish phase, investors are finding it hard to survive amidst these situations. And, they feel it is important to leave the market so that the bull market may return! To get a fair idea of Bitcoin trading