The world of cryptocurrency is contradictory. On the one hand, the degree of anonymity of cryptos is still very high, and on the other hand, the crypto market is quite transparent since blockchain takes into account all transactions in an open, decentralized, and immutable way. It is these qualities that allow us to see the full picture of events and determine the causes of all possible fluctuations. For any analyst, however, the biggest mystery still is the unpredictability of the actions of the whales, who can turn the market upside down at times.

Whale Surge

On April 18, Bitcoin fell by about $200 in just 20 minutes. Even for the extremely volatile crypto market, this shift was so huge that analysts could see it. In their opinion, based on transactions made from one of the biggest wallets, the change in price could have been due to the actions of Bitcoin holders.

The fact is that the famous anonymous wallet 3D2oetdNuZUqQHPJmcMDDYYQkyNVsFk9r (estimated to be worth $1.8 billion) decreased in size by 6,500 Bitcoins ($50 million). No wonder it is called one of the most legendary nightmares of Bitcoin owners! On the eve, yet another Bitcoin whale sold 6,200 Bitcoins. Thus, in aggregate, the whales have dumped more than $100 million of the most famous digital currency by market capitalization in just one day! The previous comparably large sale of Bitcoin and Bitcoin Cash took place on March 7, and the amount of the last whale sale was equivalent to $400 million.

Basic Versions

Analysts have quickly formed the first version of what happened. Some paid attention to the Attorney General of New York, Eric Schneiderman, who announced plans to launch an investigation into the case of 13 crypto exchanges to obtain information on their volumes, exchange commissions, and the aggregate margin. This could have scared the whales, and perhaps they decided to dump the Bitcoins from their accounts. This version was proved untenable, however, as it turned out that the news of Schneiderman's request was published several hours after the price of the cryptocurrency fell.

It is possible that these users accidentally sold large shares of Bitcoin holdings simultaneously. Or maybe there is a tendency among the whales to sell small portions of their assets over time.

The Opinions of Other Players

In general, the vibration pattern of Bitcoin most resembles the eerie smile of a Halloween pumpkin. "The best explanation is coming from those whales in the market who want to have some sort of control on what’s going on," Jonathan Benassaya, founder and CEO of IronChain Capital, San Francisco, told Bloomberg. "It’s some sort of manipulation from actors."

"Bitcoin’s recent choppy moves aren’t that unusual," said Tom Lee, head of research at Globalstrists Fundstrat. "I think it feels off right now because, you know, we’ve been on a down trend since December, and now, even though the volatility hasn’t changed much, it’s hard to tell if Bitcoin is trying to stage a recovery or if it’s continuing its down trend," he said. Given the immaturity of the crypto market compared to, for example, the stock market, it is not surprising that the liquidity within it is abundant.

Since the cryptocurrency world remains a very speculative environment, the vigilance of the investors can also be connected with a much wider range of motives. One can guess and ponder for long without biting the truth. That is the nature of the silent and mysterious whales.