Complex Made Simple

Forget Bitcoin price volatility: Who’s playing yoyo with crypto?

Few would have predicted in early 2017 that by December last year, Bitcoin would go from $1000 to $20000 and other crypto currencies would increase in value by thousands of percent.

Many sold everything they owned and mortgaged their homes to jumped on the bandwagon and found themselves on the edge of bankruptcy as prices crashed down.

Thinking that certain events or sentiments are driving prices up and down, it turns out that while this is true to a great extent, there is another culprit, equally as unpredictable, pulling the strings behind the scenes.

Majority owners of Bitcoins are playing with the crypto like a yoyo.

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Crypto manipulators

Digital Trends, a prominent industry site, said a few billionaire whales in a small pond are swallowing all the bit-fish.

No matter how many bitcoins any one person has, no matter how big they think they are, the truth is the millions of wallet owners are but small fish.

“The majority of the world’s digital currency is owned by just a few thousand wallets. Though the owners are anonymous, they are absolutely, stinking rich,” said Digital Trends.

“The recent correction didn’t shake the biggest owners of cryptocurrency, however. A few crypto-whales are sitting on a stash of Bitcoin, Litecoin, and Dash worth billions of dollars, and they’re not selling. Instead, most of them continue to buy, hoarding masses of cryptocurrency, gradually migrating Bitcoin and altcoins into the hands of the crypto elite.”

What kinds of dollar figures are we talking about?

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Crypto elite

According to statistics put together by BitInfoCharts through parsing the blockchain, of roughly 23 million Bitcoin wallets in existence, more than 13 million of them own only a fraction of a Bitcoin, or a small portion of the overall financial landscape.

“At the other end of the scale, only 1,500 addresses have between 1,000 and 10,000 Bitcoins in them. The top 111 wallets have more than 10,000 Bitcoins a piece. That’s tens of millions of dollars’ worth of cryptocurrency in each wallet,” said the site.

Using BitInfoChart’s latest calculations, 87% of all Bitcoins ever mined are owned by just o.5% of bitcoin wallet owners. The figures only tighten from there. 61% of all Bitcoins are owned by just 0.07% of wallets.

The second largest wallet in the world (Bitcoin Address 3D2oetdNuZUqQHPJmcMDDHYoqkyNVsFk9r) contains 163,133 Bitcoins, worth around $1.6 billion.

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“It’s thought to be a cold storage wallet — a Bitcoin wallet kept offline to avoid hacking – owned by BitFenix, a cryptocurrency exchange.”

There are over 100 Bitcoin wallets around the world with a collective $28.6 billion worth of Bitcoin in them, and that’s with a price half that of the December 2017 peak.

The 9th most full Bitcoin wallet in the world, worth around $657 million have never taken any Bitcoin out, and haven’t had a meaningful input since 2014.

“These are classed as “dormant” wallets. They could be true long term holders who want to see where the market goes, or part of the millions of Bitcoins thought lost to wiped hard drives, forgotten passwords, and other problems,” said Digital Trends.

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Crypto manhandling

The single most packed Bitcoin wallet in the world increased its holdings by 60,000 Bitcoins in the last days of 2017.

“While it’s transferred out a few thousand since, it seems clear that it was taking advantage of the big dip that hit Bitcoin pricing following its latest surge. The number four wallet followed a similar pattern in early 2018,” said the site.

“The hoarding of wealth by a slim number of wallets gives those owners incredible power. Like stock traders, if the largest Bitcoin wallet owners decided to cash out, it could send prices tanking, leaving the much smaller investors concerned about what to do with the rapidly dwindling value of their own holdings.”

According to the site Bitcoin investor Roger Ver caused consternation by moving tens of thousands of Bitcoin to various exchanges. Roger Ver deposited 25,000 BTC to Bitfinex to manipulate the market, it was reported.

His public comments on the viability (or lack thereof) of Bitcoin also caused problems with the market, and while promoting Bitcoin Cash, a Bitcoin offspring, he warned that bitcoin could see “a mass exodus of people rushing for the door.”

“Alongside the transaction cost issue Bitcoin faced at the time, all of this may have been part of the reason that Bitcoin values crashed hard in December,” said Digital Trends.

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Crypto performance end last week

Coin telegraph said that Paul Day, a technical analyst and head of futures and options at Market Securities Dubai Ltd believes that  Bitcoin can sink to $2,800 if certain market conditions are met.

“It is common to see wild price forecasts on the downside when Bitcoin is falling. We saw similar outrageous forecasts on the upside when the cryptocurrency was rising, said the Coin Telegraph.

The site offered analysis forecasts based on end of last week’s major crypto performances.


Bitcoin fell to $8,066.61 levels on March 15. The bulls are trying to defend the $8,000 levels and pullback towards the $9,500 levels.

If prices fail to sustain above the overhead resistance zone of $9,500 to $10,000, the cryptocurrency can fall to $7,850 and after that to the February 06 lows of $6,075.04.

Read: Bank error nets Bitcoin owner $trillions: Inside the weird world of cryptos


Ethereum extended its downtrend as it fell to $568.29 on March 15, close to the February 06 lows of $565.54.

We expect the bulls to attempt a bounce from these levels.  If the bounce fails to gain strength, the next down leg in the ETH/USD pair will break below the $565.54 support and move lower to $500 and then to $430 levels.


Bitcoin Cash fell to $910.6798 levels on March 15.

The BCH/USD pair will become positive in the short term once the price sustains above $1,150.


Ripple found support at the $0.62681 levels on March 15. We believe that the support zone between $0.695 and $0.5627 will hold.

The bulls are attempting to pull back above the March 15 high of $0.72685. Once this level is crossed, a move to the 20-day EMA is possible where the cryptocurrency will face strong selling pressure.

During the next decline, if the XRP/USD pair does not break below $0.695, we can expect it to trade in a large range. We may try to trade this, but as we don’t see any buy setup, hence, we don’t recommend any trade on it at the moment.