Market downturns can occur due to various factors, with the actions of large investors, known as whales, playing a significant role. These factors include:
1. **Large Sell Orders**: When whales sell off a substantial amount of their holdings, it increases market supply, pushing prices downwards.
2. **Market Influence**: Whales often possess insights and analysis that smaller investors lack, influencing market sentiment and prompting others to follow suit.
3. **Profit-Taking**: After significant price increases, whales may sell to lock in profits, triggering broader sell-offs as investors anticipate a market peak.
4. **Liquidity Impact**: Moves by whales with large amounts of capital can disrupt liquidity, intensifying market volatility and driving prices lower.
5. **Manipulation Potential**: There are instances where whales may intentionally lower prices to buy assets at cheaper rates later.
To determine the exact cause of a specific market downturn, it's essential to review recent market news, economic indicators, and trading patterns.
(Source: Binance)