Rajarshi Mitra
Independent Analyst
- By comparison, 448 people own 20% of all Bitcoin.
- Chainalysis also found that ETH prices follow BTC prices.
Chainalysis, a blockchain analysis startup, stated that the 376 individuals owned 33% of the entire fund yet the number is actually down from levels seen in 2016 and 2017. The study also revealed that 376 whales have “no meaningful” impact on the ETH price. However, the intraday volatility in the cryptocurrency market boosts whenever they make large sell-offs. Moreover, the majority of the whales are not active traders and that they are only holding their funds.
Chainalysis also used a vector autoregression (VAR) model and found that ETH prices follow bitcoin (BTC) prices. Chainalysis said:
“These preliminary findings are consistent with the literature on stock market prices and volatility. Academics have found that large anomalous fluctuations in traded volumes of particular stocks, notably the S&P 500, tend to impact volatility and not price levels.”
Kim Grauer, a senior economist at Chainalysis revealed in an interview that, by comparison, 448 people own 20% of all Bitcoin. Grauer plans to turn the research into an academic paper analyzing the effect of large Ether holders on the market. She said:
“We’re excited to bring the models that have been applied to the stock market to cryptocurrencies. It’s unfortunate this bull run didn’t happen a month ago to be part of our analysis.”
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