Crypto

Idle Bitcoin – Millions of BTC at rest during the crypto winter

Sleep well – it’s not easy in the middle of a bear market. Crypto winter freezes our nights and torments our brains. The course of the remaining cryptocurrencies is there, in the corner of the head. Paradoxically, some, or rather some, sleep peacefully: these are whales. Sleep, their best ally, ensures the good health of their wallet. Thus, having fallen into the arms of crypto-Morpheus, cetaceans 3.0 seem ready to go through the ice age that we are going through, peacefully clinging to our beloved BTC.

BTC whales are sleeping

To fully understand this natural phenomenon that is BTC whale hibernation, you first need to go back to the basics. What is a whale in cryptography?

This is an encrypted address, a wallet (portfolio in English), which stores many cryptocurrencies. In our case, we are interested in those who hold bitcoins. The peculiarity of these wallets is that they are inactive, sleeping. Indeed, after a whale has accumulated a ton of bitcoins, it takes him several years to throw them out through his hole! And that’s the whole point of this cryptographic look.

Often veterans of the first hour or whales of the first ICOs, these wallets create a legend over the years that accompanies them and expands on the myth.

Number of bitcoins accumulated by whales / Top 5 dormant wallets Source – Bitcoininfocharts

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Bitcoin merchant passed

There are several types of sleeping pills for these wallets. A “hold” strategy (holding your cryptocurrencies ad vitam æternam) to reduce BTC volatility in the short term is a good reason not to touch your wallet. Then refusal to sell becomes a way to make a profit. Other cryptowhales are out of spite too. Their funds are blocked because they have lost their private keys. Some then move heaven and earth to find their cherished bitcoins lost forever.

Last but not least, some of these wallets date back to the original era, the birth of Bitcoin. They are the cradle of our ecosystem. Although dangerous, these whales can wreak havoc on the markets if they decide to get rid of their bitcoins like Soland the whale.

According to Bitcoininfocharts, BTC whales are so fed up that they alone hold more than 90% of bitcoins in circulation. Indeed, out of the 19 million BTC available, whales hold 17.87 million BTC. Enough sleep for several winters. The Greediest Whale is holding 79,957 bitcoins or $1.6 billion in BTC price at the time of this writing. Therefore, we are interested in these wallets, pillars of the ecosystem, remaining dormant.

So you will understand. The whale, both underwater and on the blockchain, is a valuable but dangerous species. While participating in the cryptographic legends that create the culture of Bitcoin, they also take a great interest in the crypto ecosystem: they guarantee its resilience and good health. The fact that the latter own some of the bitcoins in circulation raises questions in the long run. However, in the short term, the crypto-winter may not be deadly if the whales do not wash ashore.

Let the whales sleep! Come and meet other ecosystem legends at Binance Blockchain Week on September 14, 15 and 16, 2022 in Paris! Le Journal du Coin offers you 5 winning places (worth 880€ (commercial link).

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