Bitcoin Whale: Why Volatility Will Decline
|Slavomír Kaňuk|source|652x
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Bitcoin Whale: Why Volatility Will Decline

In the beginning, we will explain the concept of a whale from the point of view of bitcoin. Of course, this is not a giant wrinkle, which encountered cryptocurrencies while sailing the ocean. By this term we mean the owners of a larger number of bitcoins, who can often move its price through this volume. As bitcoin has a limited finite number of units (21 million) and its price changes significantly over time, so does the number of bitcoins you need to "become" a whale. It is therefore a relative concept. In the past, whales were considered to be entities that owned at least 1,000 BTC, and in the future, it is expected that 0.28 BTC will suffice.


According to Eric Peters, founder and CEO of One River Asset Management, the maturity of bitcoin will gradually lead to a stabilization of its price. In the future, we can probably forget about the rapid growths and downturns that we are currently experiencing. As the price of bitcoin rises, it attracts increasingly stronger players, who also bring greater market stability. One River Asset Management currently owns more than $ 600 million in bitcoin and plans to increase that volume to $ 1 billion in bitcoin and ether this semester.


According to statistics, the volatility of bitcoin has been declining over the years. With the exception of the crisis in March 2020, the daily volatility of bitcoin has not exceeded 10% since 2013. Since 2016, it has only approached 7% per day several times. Peters thus believes that these numbers will continue to decline with the arrival of institutional investors, who will be attracted more and more.


"Almost every big, creditable institution in the U.S. is having discussions about this."


According to the US financial institution Goldman Sachs, which has been very critical about bitcoin in the past, the situation is changing significantly as this market matures. More and more large companies, funds and financial institutions around the world are increasingly interested in bitcoin and other cryptocurrencies.


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