Why do markets always rise sharply and then plummet? Uncover the reasons behind

In the digital currency market, we often see roller coaster-like price rises and falls, often hidden behind the manipulation of large traders, the so-called "whales." Here are a few core reasons for this:

1. Market manipulation

With their abundant capital, giant whales can have a significant impact on market prices. They may adopt a "surge and plunge" strategy to create artificial market fluctuations for their own benefit.

Surge stage:

Buying in bulk: Whales buy large amounts of a cryptocurrency, sending the price soaring. Create hot spots: They may spread good news or rumors to arouse market enthusiasm, inducing traders to follow suit and buy, further pushing up prices.

Plunge stage: High selling: When the price rises to a certain height, the whales begin to sell their holdings and obtain huge profits. Profit Harvesting: As whales sell in large quantities, the market becomes oversupplied and prices begin to fall rapidly. Escape from the market: Giant whales leave the market with huge profits, while small traders who bought at high prices face losses.

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