Why can "whales" determine the price of Bitcoin?

3년 전

We have to make clear, to begin with, what the term "whale" really refers to. It refers in the case of digital currencies, of course, to someone who has a lot of money, who is in a position to buy and sell huge amounts of digital currency, which can drive the market very quickly.

Because the digital currency market, in the larger scheme of things, is actually relatively small - with a total market value of $ 350 billion - it means that there are some investors who have the ability to have a significant impact on the price of at least one digital currency, like Bitcoin.

It is important to be aware of whale whales and how they can affect the digital currency market. The fact is that they are among the first adopters of the developers, making them sit on millions of digital currencies. Nevertheless, it is worth noting that they can be risky individuals and individuals with high net worth, who may have recently explored the digital currency market and viewed it as a means of making money, or major institutional investors placing large mortgages on the direction in which the market will move in the future.

When you consider that 1,000 people own 40% of all available ingredients, you can easily see that there are some whales who, if they sell huge stakes of their own, will cause great damage to the public price.
Previously Bitcoin whales were trading on the largest and most liquid bottling platforms, but the market matured and OTC traders began providing services to adult developers to keep their identities hidden.

Although whales may have a huge impact on the Bitcoin market, their impact will probably be concentrated in the alternative digital currency market. The value of the market now stands at $ 100 million, so if a whale buys or sells a huge amount of digital currency, it can cause a huge market move. In case you consider investing in a smaller alternative digital currency, it is advisable to consider the distribution of wealth so that you help you identify potential whales.

There are some ways you can identify potential whales, which have become more difficult over the years, but one way is to monitor the addresses of portfolios for larger currency holders, which will help you stay tuned to major currency shifts. In addition, try to monitor the order orders. If there is a sudden big demand for a purchase or a sale, it can be noted that you have a potential whale. It can also verify any changes that arise on a particular digital currency that are not associated with any ads. Although quite unexpected, it may mean that a potential whale has entered the market.

While these are something we should be aware of, there are always whales in the financial markets, and as more institutional investors enter the market, whale numbers will undoubtedly increase. This does not have to be a bad thing in fact, but what is important is for investors to know what they fear to prepare for.

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@ali11 Whales are good for volatility and is a traders paradise. You can't beat the whales, but if you can spot when they buy and sell on a consistent basis, you will become the whale in time.

Great article, thanks for sharing. I've smashed the upvote button for you!

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