Bitcoin, Crypto currency, Blockchain

Bitcoin whales are “HODL’he” – no price manipulation?

Often the rumor is that the Bitcoin price is determined by a few big “whales” and manipulated. The latest data show, this is probably just a rumor. The “Bitcoin days destroyed” the Index shows that whales have a tendency to “Hodlen”.

Holders of large amounts of Bitcoin are referred to as whales. In the eyes of many Bitcoin investors, they represent a potential danger for the market, since whales can manipulate the Bitcoin price, so the rumors, as desired.

It is assumed that approximately 40 percent are held by Bitcoin by 1,000 owners. The largest 100 addresses make up approximately 20 percent of all outstanding Bitcoin.

It is also a persistent rumor that the few whales coordinate their movements, because you know for years, from the early days of Bitcoin. Kyle Samani, Managing Partner at Multicoin Capital, a few months ago to Bloomberg (freely translated):

I think there are a few hundred people. You all can probably call each other, and you probably have also.

Because Bitcoin is a currency and not securities within the meaning of the SEC, there is no prohibition. Gary Ross, a lawyer for the securities in the case of Ross & Shulga, explained to Bloomberg that there is no prohibition against a trade, in which a group agrees to buy enough to drive up the price and then sell on within minutes.

Samani explained to Bloomberg that he, like most of the Hedge-Fund Manager, specializing in crypto-currencies, the trading activities of the largest addresses. If Samani sees a activity, Bloomberg, he calls the seller immediately, in order to obtain motivation for sales and trading. Ross said that the Gathering of information is legal (freely translated):

We all know who we are, and we help each other and share our information. We all want to just earn money.

Ordinary investors do not have these privileges, of course. The largest Bitcoin addresses are known and can be tracked. Backgrounds to a transaction are Small investors, however, is not transparent. Due to this, it is not surprising that Bitcoin-whales represent in the eyes of many investors a potential danger.

Bitcoin Whales “Hodln”

Latest statistics show, however, that Bitcoin whales take advantage of their “Power” may be, to the extent that many assume, as the current “Bitcoin days destroyed” (BDD) shows indicator.

BDD is a calculation for each Bitcoin transaction, based on the number of BTC multiplied by the number of days on which these coins have not been moved. The higher the number of days for transactions, on average, the greater the indicator is that investors sell dear “hodlen”.

For example, If someone has 100 BTC that they received a week ago, and this after already a week, 7 days, spends, is of the BDD 700.

BambouClub mentioned yesterday, via Twitter, that in accordance with the current Numbers of the BDD Trend shows that owners of large amounts of Bitcoin since its inception in the year 2009 up to the present, tend to keep their Bitcoin and do not sell (HODL).

This Trend speaks loudly BambouClub the opinions of many Mainstream media, the claim that Bitcoin is a bubble and will collapse.

According to BambouClub of the BDD Index fell in January 18, and fell in the course of the year 2018. This does NOT fit to the claim that whales sell and Noobs sell.

BambouClub also that whales from the sides of the Bitcoin market manipulation, such as BDD indexed.

From our perspective, the BDD is no one hundred percent proof that there is no Bitcoin price manipulation (away from the Mt. Gox insolvency administrator) by Bitcoin whales was carried out. Finally, the BDD is only an average value. Nevertheless, the BDD from our point of view, can be an indicator.

An alternative Interpretation could be that the BDD is a Manifestation of the sharp decline of the Bitcoin transactions.

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