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Home Blog Gate. io AMA : Bitcoin Whale and Grayscale Bitcoin Trust

15:39

09 September

Gate. io AMA : Bitcoin Whale and Grayscale Bitcoin Trust



Pinned message :


❗️❗️ Do not panic! You’re not banned, you are just muted temporarily for Gate.io AMA event ❗️❗️



The AMA Flow:


Session 1: Group will be muted to have several questions with our Guest including introduction.


Session 2: Group will be opened for community to ask their questions for a few minutes. Speaker will select 3 questions to answer.


Session 3: 3 Lucky users with best questions will get $5 bonus of each.




Dan :Hi, nice to see you.


Jane:Hi, again, it's our AMA time.


Dan :Yes, what is the topic for today?


Jane:After several rounds of AMA, we will need to study how to analyze the data.


Dan :Great, let's get started.


Jane:Thanks, here you go.




Q : What is Bitcoin Whale?


A : As all of us know, Bitcoin is the major crypto currency in the market, and its trend is leading other coins.


Bitcoin Whale, is a cryptocurrency term that refers to individuals or entities that hold large amounts of bitcoin. Whales hold enough cryptocurrency that they have the potential to manipulate the currency valuations.



Q: How much the influence of Bitcoin Whales?


A:

The three largest bitcoin holdings comprise 7.18% of all bitcoin in circulation and represent a value of approximately $621 million in February 2021.1

Bitcoin whales are like other majority asset holders: their movements have outsized impacts on the bitcoin market, either through increased volatility, decreased liquidity, or a combination of both.

The biggest bitcoin whales are Satoshi Nakamoto, the inventor of bitcoin, the Winklevoss twins, and venture capitalists like Tim Draper and Barry Silbert.2


Q : From above we can see, Bitcoin Whales can affect the crypto currency market.


A : Yes, you are right. Let's list out more of it.

Large bitcoin holders are called whales because their movements disturb the waters that smaller fish swim in. Following the 80-20 rule , the top 20% of bitcoin holders have more than 80% of bitcoin value in U.S. dollars.

Whales can be a problem for bitcoin because the concentration of wealth, particularly if it sits unmoved in an account and lowers liquidity, which, in turn, can increase price volatility. Volatility is further increased if the whale moves a large quantity of bitcoin at once.

Whales create the conditions for speculation among the little fish, which can result in a vicious cycle where prices become untethered to underlying fundamentals.


Q: Can you show me the pictures to reflect the influence caused by Bitcoin Whale?


A: Sure. Please see below.


Blue line is Net Transfer Volume from/to Exchanges, if you can see the big diving down or big uprising, means the Whales were SELLING or BUYING in big volume. And you can see Green line show the prices were fluctuating according to the volume.




Below picture is showing the movement in the addresses.


From August 31st of 2021, the value worth of $943,975,792.29 have been traded from one block, it was the key signal of the price rising to $52971.4 from August 31st to September 7th.




From below Twitter, Bitcoin Block Bot, the message below is collected from above.




You can see there're the signals from the medias to show you the flow of Bitcoins, so as other coins. And combine the analysis of the indicators and tools, then you may control more of the market trend.



Q: It is very useful tips for all the traders. But besides the Whales, if there's other big entities to balance the price or influence the price?


A: Very good question, the anwer is yes. Now let's get to know a little about Gray Trust.


The Grayscale Bitcoin Trust is a digital currency investment product that individual investors can buy and sell in their own brokerage accounts. On January 21, 2020, it became an SEC reporting company, registering its shares with the Commission and designating the Trust as the first digital currency investment vehicle to attain the status of a reporting company by the SEC.


The investors have access to buy and sell public shares of the Trust under the symbol GBTC.


Advantage of GBTC:


As an investment vehicle which trades over-the-counter, GBTC is available for investors to buy and sell in the same way as virtually any U.S. security. As an example, GBTC can be traded through a brokerage firm, and it's also available within tax-advantaged accounts like IRAs or 401(k)s.


Disadvantage of GBTC:


Possible disadvantages of investing in the Trust include paying high premiums along with the annual fee, along with the risk factors associated with the overall volatility in the cryptocurrency market, as well as with investments vehicles that aren't required to register with the SEC.



Q: Seems we have to jump amongst these medias to check the data. If there's the easy way?


A: Your question is really getting to the point. Gate.io mobile APP has Analytics of all above data. Please open APP and you can see below page.




Click circled Analytics, go to below about BTC analysis.


From this page, you can see the basic analysis of the whole market status.


1.Liquidation Data, you can read how much volume has been lost from the price diving down.

2.Contract Position, how much Contract in Gate.io and global platforms.

3.Gray Positions: Holdings of GBTC

4.Block Trade: Long and Short trading volumes

5.Long-Short Ratio, for Contracts and Block Trade. The ratio of Long and Short can show the attitude of traders to the market. From below, the market is in balance, will not have huge up and down.

6.Panic Index, shows the traders are with neutral attitude to the market.



Q: Where is the field about Gray Trust and Holdings?


A: Let's click below Holdings on the top of the page.




Holding Distribution


From below, you can select the coins and you can see the percentage of the holding for all Whale Addresses.




Holding Transfers, it shows the real-time transaction of BTC.




Top 100 Address Holdings, you can see the transaction within 1D/7D and from which platform.




Next to Holdings, there's the button of Grayscale Funds.


Click it and you can see the picture as below.

1.Red line,Number of Coins Held.

2.Grey line,Coin Price.



All above data can help you to understand what the Whales are doing in the market. Once you see the big volume transaction, combine the tools in K pattern, start to prepare BUY or SELL.



Q: It is good to know, in the future we can explain more of Gate.io Analytics.


A: Sure, we will. And now it's Question Session as usual, the best three answers can win $5 of each. And if there're the users join AMA continuously 3 times per week, can win another extra $5 bonus.


We are distributing the bonus all the time. Let's go to the session now.



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