The existence of Bitcoin whales is no secret to anyone, nor is their power to manipulate the market. However, people like Peter Schiff widely denounce the power of these Bitcoin whales. The latter was demonstrated on his twitter recently.
What happened on Twitter between Peter Schiff, president and owner of Euro Pacific Capital, and Tyler Winklevoss, co-founder and CEO of Gemini, is interesting since it allows us to think about the real involvement of Bitcoin whales in the market.
Peter Schiff: “Whales like you manipulate the price”
All of this happened a few days ago when Winklevoss tweeted: “The day after Goldman Sachs says not to buy Bitcoin, BTC is up + $ 500” Schiff couldn’t resist and replied.
@tylerwinklevoss Probably because whales like you manipulate the higher price to minimize the importance of bad news. The supply of big fools is running low, and it’s unlikely to include enough institutional investors to maintain the pyramid scheme.
What Schiff says is that when whales see that there is bad news that could affect Bitcoin’s perception, they use their power to manipulate the price and minimize the effect of the bad. Among those who accuse such a practice is Winklevoss himself.
He also took the opportunity to continue insisting that Bitcoin is a pyramid scheme. Peter Schiff has always been among the top detractors of BTC, so his comment is not at all strange. According to him, the “fools” who believe in Bitcoin are running low.
However, these types of accusations should always be viewed with a magnifying glass, since although whales could effectively influence Bitcoin’s price, it is not always the determining factor in their valuation. For this, we always recommend keeping an eye on Whale Alert alerts or on our summary reports of activity of Bitcoin whales.
BTC price manipulated by whales?
Faced with Schiff’s accusation, we decided to analyze in detail the recent activity of Bitcoin Whales and the changes in the price of BTC.
June kicked off with a quick and fleeting rise in Bitcoin above $ 10,000 for the first time in nearly a month as protests in US cities. USA continue to intensify. But, at the time of writing, this publication is around US $ 9,500.
The accumulation of Bitcoin is evident, adding a total of 33,321 BTC taken from exchanges and taken to unknown wallets through 11 movements. The 19,599 BTC accumulated yesterday may have helped propel Bitcoin above $ 10,000.
That brief boost could be the antecedent to a deeper decline, and even the rate of accumulation slowed today. However, we have not seen whales introduce liquidity to the market. If we compare the activity of the whales over the weekend with today, we will notice that the increase in transactions was significant.
In conclusion, it may be that Schiff was correct this time and the whales were manipulating Bitcoin’s rise. However, with today’s crash this may not be telling the story completely.