Up to1,600 investors known as bitcoin whales’ collectively hold a third of the entire cryptocurrency

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Data from blockchain research company Chainalysis showed in April there were 1,600 bitcoin wallets held by investors, all of which contained 1,000 of the alt-coin each. The unidentified ‘whales’ scooped an eye-watering 5million bitcoins between them, which amassed to a third of the market, according to the FT. Just under 100 wallets contained between 10,000 and 100,000 bitcoin which would be valued at between $75million and $750million at today’s prices. Chainalysis chief economist Phillip Gladwell said: “This concentration of wealth means that bitcoin is at risk of volatility as the moves of a small number of people will have a large price effect.”

Bitcoin is the most popular cryptocurrency and enjoyed a dramatic rise to the top last year

Bitcoin is the most popular cryptocurrency and enjoyed a dramatic rise to the top last year when its price rose by 1,000 percent and its value peaked at $20,000 in the run-up to Christmas. But since then, its trade price has fallen back down to $7,500 as regulators circle the sector and competitors Litecoin, Ripple and Ethereum flood the market. Chainalysis data estimated long-term bitcoin holders sold off $30billion of the digital currency between December 2017 and April 2018, with half of trading taking place last December alone. Mr Gladwell said: “This was an exceptional transfer of wealth, and conditions for it to occur again are unlikely to form again soon.”