In the cryptocurrency world, the term “whales” is used to describe individuals or entities that hold large amounts of a digital asset, such as Bitcoin or Ethereum. These whales have enormous influence over the market, as their movements can cause significant price swings. When a whale sells a large amount of cryptocurrency, for example, this can trigger a drop in prices due to the sudden increase in supply. On the other hand, mass purchases can quickly drive prices up, creating a bullish feeling in the market.
In addition, whales do not always act neutrally. They often manipulate the market to gain an advantage. Practices such as “pump and dump”, where they artificially inflate the price of a coin and then sell it at a profit, or “spoofing”, which involves placing fake orders to deceive other investors, are common examples. Although their role can bring liquidity and visibility to the market, small investors need to be careful, as these large movements can directly impact their strategies and profits.
