Crypto Whales Manipulating & Move Market with Strategic Dumps That Ruin You (How Bitcoin Works) | by Alyssa Mahin | The Capital
In the world of cryptocurrency, a “whale” refers to an individual or entity that holds a large amount of a particular cryptocurrency. They influence market prices due to the large amount of assets they control. These whales typically have significant influence over the market due to the sheer size of their holdings. The term “whale” originated from traditional financial markets, where it similarly denotes large investors who possess substantial capital and can impact market prices with their trading actions.
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When a market whale decides to dump their holdings, it means they are selling a significant amount of their assets (such as cryptocurrencies, stocks, or other investments) all at once. Here’s what happens: Market Impact: A whale’s large sell-off can drastically affect the market. The sudden increase in supply can lead to a sharp decline in prices. Smaller investors and traders may panic and follow suit, exacerbating the downward trend.
Who Loses?: Other investors bear the brunt of the impacts and the whales both control and walk away with the win. There are a lot of different whales in…
