Bitcoin price could plummet if '1,000 holders who own 40% of the market' sell up, report claims

The report adds that many of the so-called whales have know each other for years, and may coordinate their moves by sharing information

Aatif Sulleyman
Monday 11 December 2017 14:25 EST
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Just 1,000 bitcoin holders own 40 per cent of the market, according to a new report.

These major investors, known as “whales”, could cause the value of the cryptocurrency to plummet at any point, it has been claimed.

Bitcoin hit a new record high on 8 December, soaring above the $17,600 mark. At the start of the year, it was worth $970.

However, the cryptocurrency is notoriously volatile. Its value fell to below $14,000 on 10 December, before rising to more than $16,000 on 11 December.

What's more, financial experts have suggested that bitcoin could be even more unstable than people thought.

1,000 holders own about 40 per cent of bitcoin, a new Bloomberg report claims, adding that the future of the cryptocurrency lies largely in these so-called bitcoin whales’ hands.

At current prices, each of them may be considering selling around half of their holdings, Aaron Brown, the former managing director and head of financial markets research at AQR Capital Management, told Bloomberg.

The report adds that many of the whales have know each other for several years, and can coordinate their moves by sharing information – which isn't illegal in the case of bitcoin.

According to a recent report, 16,381,204 bitcoin were in circulation as of mid-2017, and almost four million have been lost and may never be recovered.

This article originally used the word “people” about the biggest holders of bitcoin. Some of those owners are in fact groups and organisations, and the article has been edited to reflect that.

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