Why did the market suddenly drop?
One key factor: whales❗
Market downturns can result from several causes, and large investors, or "whales," play a significant role.
Here’s why they might trigger a sudden drop:
1. Large Sell Orders: When whales sell off a substantial portion of their assets, it floods the market, driving prices down.
2. Market Sentiment: Whales often have insights or analysis that smaller investors don’t. Their actions can signal issues, prompting others to follow.
3. Profit-Taking: When whales take profits after a rise, it can spark a sell-off as others fear a peak.
4. Liquidity Issues: Large transactions by whales can create liquidity problems, leading to increased volatility and price declines.
5. Market Manipulation: Sometimes, whales may intentionally lower prices to buy back assets at cheaper rates later.
To determine the exact cause of a downturn, examine recent market news, economic indicators, and trading data.