How do whales think?
3 smart signals reveal the movements of major investors in the crypto market
In the world of cryptocurrencies, not all movements are equal. Some wallets create small ripples, while large wallets โ or what we like to call 'whales' โ can tip the scales in the market in an instant.
In this article, we will reveal to you **how to intelligently track whale movements**, and what are the **3 important signals** that can give you deeper insights into market behavior.
## ๐ First: Who are the whales in the cryptocurrency market?
Whales are individuals or entities that own large amounts of a specific currency, such as BTC or ETH, and their movements often have a significant impact on prices due to the volume of their transactions.
## ๐ Signal 1: Large on-chain transfers
(On-chain Transfers)
When you see a transfer of millions of dollars to or from an exchange, there is often strategic movement happening behind the scenes. To monitor this, use tools like:
Whale Alert
Arkham Intelligence
๐ก *Tip*: Monitor transfers from cold wallets to exchanges, as they may indicate selling intentions.
## ๐ช Signal 2: Decreased liquidity on exchanges
If you notice that the amount of a certain currency on trading platforms is decreasing, this may mean that whales are pulling coins for long-term storage (HODL), which could affect supply and lead to a price increase.
๐ **Live example**: At the beginning of 2024, a significant decrease in the amount of BTC on Binance and Coinbase was observed alongside a price increase.
## ๐ง Signal 3: Activity of old addresses
When old wallets that have remained silent for years start to move, there are often unusual intentions โ it could be a large sale or a response to a significant event in the market.
๐ Track this activity through tools like:
Glassnode
LookIntoBitcoin
## ๐ What does this mean for you as an investor?
Intelligence in the cryptocurrency market does not rely solely on technical analysis, but on **reading market behavior**. Tracking whales gives you early insight into trends and may help you make more informed and profitable decisions.