Whales Addresses Returning $3.8 Million To BTC - Is This Good Sign?

According to Antoni Trenchev of CNBC, “Bitcoin will be worth more than $100,000 before this year runs out." However, he expressed "concern" about bitcoin's short-term prospects, implying that it may fall along with traditional financial markets as the Federal Reserve begins to withdraw its money.

On the other hand, he believes that a "crash" in the stock market will cause the Federal Reserve of the United States to "quickly return to easing." If Trenchev is correct, Bitcoin's price would have to rise by more than twice as much this year. Trenchev predicted in January 2020 that Bitcoin would be worth more than $50,000 by the end of the year. "Everyone was laughing at me," he says.

Trenchev was incorrect when he predicted 2020. Bitcoin's highest point that year was just over $29,000. However, cryptocurrency was worth more than $50,000 by February 2021. As major Wall Street firms such as Jump Trading and Jane Street continue to invest in digital assets, crypto enthusiasts claim that the market has matured and that there is hope.

Meanwhile, crypto "whales" such as Do Kwon, a co-founder of blockchain company Terra Labs, are stockpiling Bitcoin worth millions of dollars in the hopes that it could one day become a "reserve" currency.

However, some factors are working against the market. The world's rules remain erratic, and the cryptocurrency market remains volatile. In addition, Bitcoin remains inextricably linked to the stock market, particularly the Nasdaq index. As long as the stock market remains volatile, so could Bitcoin.

Is This a Good Sign?

Different cryptocurrency executives believe that prices will rise before the end of this year. On Wednesday, Paolo Ardoino, Bitfinex's chief technology officer, told CNBC, "Right now, I would say that there is global uncertainty in the markets, not just the crypto markets but also the stock markets."

"Volumes in cryptocurrency are decreasing. For example, Bitcoin volumes have decreased in recent weeks. So, this metric is very important because it shows that many whales, active market participants, and people who were very active in the past are no longer trading."

Whales are large investors who can move the market. Ardoino believes that the price of Bitcoin could fall below $40,000 but that it will be "well above" $50,000 by the end of the year. "I have high expectations for Bitcoin... I'm optimistic because I see a lot of activity in this industry and many countries that want to use Bitcoin.

What Should Investors Expect?

Despite price fluctuations and recent declines, many analysts believe Bitcoin will soon be worth more than $100,000. Although, most of them disagree on when this will occur. According to a recent Deutsche Bank study, roughly a quarter of Bitcoin investors believe the price of Bitcoin will be more than $110,000 in five years.

Volatility is nothing new, and it's one of the main reasons why experts advise new cryptocurrency investors to be extremely cautious before putting any money into cryptocurrency. Bitcoin's value has risen over time, as has the value of every other cryptocurrency on the market. So Bitcoin investors have the right to be concerned about how far the currency can rise in the long run. Unfortunately, Bitcoin's price is extremely difficult to predict, and it is even more sensitive to market factors than other asset classes.

Biggest Bitcoin Whales

Bitcoin whales cause excitement with every step they take, causing fear and surprise. So who are these known/unknown "whales" of the cryptocurrency world?

Behind many of them are anonymous traders, exchanges, and hedge funds, which their public addresses can only identify. However, among them, some openly declare themselves.

Let's take a look at the biggest Bitcoin whales.

Satoshi Nakamoto

It seems that the list would be incomplete without mentioning the creator of Bitcoin, Satoshi Nakamoto. He created this coin back in 2008. Since then, one of Nakamoto’s most famous addresses, called the “genesis address,” has been almost inactive, not counting its contributions from some grateful users who send him varying amounts of Bitcoins.

However, they say that the digital gold alchemist himself owns about 1 million coins (although they give different numbers). Currently, their value may be around $4 billion. However, these coins are probably in different places since there is a general belief that Nakamoto has several addresses.

Thus, it can be assumed that Satoshi Nakamoto is the largest Bitcoin holder in the world.

The Winklevoss Twins

Twins Tyler and Cameron Winklevoss once stood at the origins of Facebook and parted ways with its creator Mark Zuckerberg, filing a lawsuit against him in 2004 for the right to the site. As a result, they received a $20 million payout and Facebook shares. They invested these funds in various enterprises, including Bitcoins. In 2013, the twins invested $11 million in Bitcoin for $120 per coin, receiving approximately 92,000 Bitcoins with a current value of approximately $368 million.

There were also interesting reports that the twins decided to distribute fragments of their private keys to several safes throughout the US for their safety. 

Barry Zilbert

Barry Zilbert is an early owner of Bitcoin and one of the largest investors in the world. They even surpassed the Winklevoss twins in their investment in Bitcoin, investing $16.8 million in coins. In addition, Zilbert was responsible for buying Bitcoins confiscated from merchants during the Silk Road shutdown. Zilbert bought Bitcoins for $350 per coin. Zilbert's Bitcoin fortune may now be almost $192 million if he still holds these coins.

Tim Draper

In an interview with Forbes, well-known Bitcoin advocate, and venture capitalist Tim Draper talked about how he got his start in the crypto industry, mining bitcoins and keeping his savings in a “reliable” exchange:

“We started mining, got a bunch of bitcoins, and sent them to a secure exchange called Mt. gox. However, this money disappeared, and then I thought: Too bad! So Draper began to slowly grow his portfolio again, gradually increasing the number of bitcoins in it. He was engaged in buying up bitcoins at an auction and eventually accumulated about 40,000 coins. At the moment, the value of bitcoins that Draper probably still owns is approximately $160 million. This also makes Draper one of the biggest whales.