The -billion Bitcoin whale that fueled a selloff

When Bitcoin plunged as much as 15 percent over two days last week, a theory emerged — where else? — on the Internet: a whale was on the move.

Speculation mounted that a major holder of cryptocurrency with an electronic wallet that dated back to 2011 — long before anyone had heard of HODL — was moving to sell. His or her wallet had once had as many as 111,114 Bitcoins, which at their peak would have been worth about $2 billion. The rumors that began two weeks ago were that this whale — as big holders are known — was looking to cash out after this year’s plunge in prices.

Debates flared up on Reddit. Galaxy-like graphs were disseminated. And Bitcoin origin stories from Dread Pirate Roberts to Mt. Gox re-emerged.

The case has all the elements of a classic Bitcoin mystery: famous wallets, a vicious cycle of speculation reinforcing a selloff and intense amateur sleuthing on the Internet that might not have exactly hit the mark. It also shows what makes Bitcoin unique:…