$NOT Kit, hamster and foundations
Funds, whales and hamsters: who is driving the cryptocurrency Market?
The world of cryptocurrencies is a jungle inhabited by different creatures: nimble hamsters, powerful whales and wise elephants (foundations and large organizations). Each of them plays its own role, influencing prices and the course of the market.
1. Funds.
Foundations are the heavyweights of this world:
- They move slowly, but confidently.
- They do not give in to emotions.
- They act on the basis of careful analysis and thoughtful strategies.
- They invest huge amounts of money as part of long-term plans.
Why?
- They are responsible to their investors.
- They can't risk their reputation.
- Limited by legislation and internal rules.
Example:
The fund analyzes the potential of #TWT and determines the purchase zone below $1.10. The price of #TWT rises to $1.05. The Fund is in no hurry to buy, as it needs to maintain the average purchase price.
2. Hamsters.
Hamsters are nimble and emotional creatures:
- They react quickly to news and changes in the market.
- They often buy and sell under the influence of fear or greed.
- They can push the price up or down with their spontaneous decisions.
Example:
There is news in the media about a possible partnership between TWT and a large company. The price of TWT is rising sharply as hamsters buy tokens in the hope of rapid growth.
3. Whales.
A whale is a huge and dangerous creature:
- Can single-handedly influence the price of cryptocurrency.
- Uses his power to manipulate the market to his advantage.
- It can lead to sharp price spikes, and then just as abruptly reset the tokens.
Example:
Keith buys a huge amount of TWT, raising its price. When the price reaches the level he needs, he sells all the tokens, which leads to a sharp drop in price.
Who rules the cryptocurrency market?
There is no definite answer. Funds set a long-term trend, hamsters create volatility, whales can manipulate the market in the short term.
It is important to understand the essence!!!
