Why did the cryptocurrency market suddenly fall?
In the lively cryptocurrency market, you may suddenly see a red color and the price plunge, which makes people feel confused. So why did the market suddenly fall? In fact, there is an important role behind this-"whales"
Imagine that these "whales" are like giants in the ocean, and their every move will have a huge impact on the entire market.
1. A large number of sell orders
When these "whales" want to exchange the cryptocurrencies they hold for cash, they will sell a large number of coins. It's like they suddenly poured a bucket of water into the market, and the market price was shaken like a small boat and kept falling.
2. Market sentiment
"Whales" usually have more information and professional analysis, and they know the direction of the market. So when they start selling, other investors may think that there is something wrong with the market, so they also sell, just like the herd effect, everyone follows the "whales".
3. Profit-taking
If the whales made a lot of money when they bought the coins before, they may choose to sell these coins to lock in profits. When everyone sees the whales selling coins, they may worry that the market has reached its peak, so they also sell, which will cause the market to fall further.
4. Liquidity problem
Imagine if a big whale suddenly swims in the ocean, the surrounding water flow will be affected. Similarly, when the whales trade a lot in the market, the liquidity of the market will be affected, and the price will become unstable and may even fall.
5. Market manipulation
Although it is not common, sometimes the whales may deliberately suppress the market price in order to re-buy at a lower price and make more profits. It's like they are playing a big game, and we newbies may just be small pawns in it.
#MegadropLista #美联储何时降息？ #币安上线ZK
Again, at this stage, we are planning some good currencies
If you are interested and want to witness the strength
You can leave a comment of 888, and you can join the team for free!
I will not let my fans miss out in this bull market! This is the truth
