A new report from SFOX has revealed the impact that whales have on the cryptocurrency market. The paper was done in partnership with SFOX and the blockchain-tracking service Whale Alert.
The paper made many findings with special mention of the recent price movements for 2017. One major discovery from the paper was that a number of high-value transactions were credited to the slump of bitcoin from October 21 to October 22, which the paper states are due to whales moving large quantities of crypto assets in and out of the market.
Another finding from the report was what happens when a large amount of BTC is taken out of circulation. In this regard, 10,000 bitcoins were taken from due to the bust of an illegal content ring. When the bitcoins were auctioned, the price plummeted from $8062.56 to $7856.89. This is claimed to show that large movements of coins can have an adverse effect on the price of bitcoin when supply is shorted.
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