How bitcoin whales manipulate a crypto market

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When investors see a sharp fall or rise in cryptocurrency rates, then talk about the so-called “bitcoin whales” immediately begins, which manipulate the market. In this article, we understand how large crypto investors can affect Bitcoin.

When investors see a sharp drop or rise in cryptocurrency rates, then talk about the so-called “bitcoin whales” immediately begins, which can manipulate the market by buying or selling assets in huge amounts. In this article, we will try to understand how holders of rich cryptocurrency wallets can affect Bitcoin.

The term “whale” appeared in the vocabulary of crypto enthusiasts, based on banal logic: whales are the largest animals on the planet Earth, much larger than other mammals (average bitcoin investors). Everything is in the crypto market. One operation performed by the “whale” can significantly affect the cost of cryptocurrency.

To date, the largest “whale” is the unforgettable Satoshi Nakamoto (the same person or group of people who created the blockchain and bitcoin directly), on whose wallet there are currently more than a million bitcoins. If we imagine that the entire stock of Satoshi Nakamoto cryptocurrency will be sold out sharply, then we will see a powerful drop in the crypto market – up to its total collapse. Therefore, the balance of this wallet is considered in the modern crypto community as a symbol of the stability of the crypto industry and is subject to “close surveillance”.

The second largest Bitcoin wallet has over 185,000 BTC. Its owner has been “collecting” bitcoins since 2017. At the current rate, the capital of this investor is approximately $ 1.5 billion.

According to statistics, 20% of all cryptocurrencies on the planet are on 117 wallets, the owners of which are those very “whales”.

How do whales manipulate cryptocurrency rates?
There are several algorithms of the behavior of large players in order to increase their own capital by manipulating the market:

“Rinse and repeat”
The bottom line:

Bitcoin whale brings to the market a large portion of coins at a price much lower than the market price.

Small investors panic and massively sell their assets, which significantly reduces the rates of cryptocurrency.

Keith, having waited for a convenient moment, buys assets back at a better price, artificially created by him.

Walls to buy and sell

Whales can manipulate the market, even without resorting to trading operations. Large investors can earn good money by tritely bluffing when buying/selling walls.

The exchanges have the functionality of placing orders for the purchase or sale of assets for a certain price that differs from the slot price. So there are lots with speculative indicators of sales/purchases, however, the main pursued goal of such an initiative is not a transaction, but a provocation of panic among investors and traders crypto and the subsequent reaction of the market. In the end result, such requests simply “evaporate”, and no deals are made.

OTC Markets

In order not to produce an undesirable premature effect on the value of bitcoin and the general state of the crypto market, in some cases whales resort to the services of over-the-counter brokers. We have already written about this method of market manipulation, and the reader can learn more about this in our article.


Whales are quite dangerous for small and medium-sized investors and traders, but, according to many analysts, the time of major players will come to an end in the near future, and they will no longer be able to influence the market. This will happen against the background of raising awareness and education of crypto enthusiasts, increasing control and regulation of the blockchain industry by governments and a gradual increase in the crypto community.

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