Effect of the whale on the mood of the market in the cryptocurrency
In recent years, the cryptocurrency market has suffered significant volatility and volatility. One of the key factors that contribute to this volatility is the whale, which is related to large -scale commercial volumes by institutional investors, such as risk investment funds and family offices.
Whale activity can have a deep impact on market mood, affecting price movements and creation of investor behaviors. In this article, we will go to the world of cryptocurrency whale and explore its role in the mood of the market.
What are whales?
In a nutshell, whales refer to large investors with a significant amount of cryptocurrency. They often invest in several cryptocurrencies at the same time, using their collective purchasing power to direct price movements. Whales can be individuals or institutions and are an essential part of the cryptocurrency ecosystem.
Whale growth
The whale activity has increased in recent years and is driven by the growth of cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH). The increasing implementation of decentralized exchange (DEX), such as Uniswap and Sushiswap, has also contributed to the whale. These platforms allow users to market cryptocurrencies with minimal rates and high liquidity.
As a result, whales have accumulated a great destination in the room. According to Coinmarketcap, the 10 largest cryptocurrencies (whales) 2020 consisted of:
- Binance (BNB): $ 13.6 billion
- Coinbase (ADA): $ 3.4 billion
- Kraken (XRP): $ 3.2 billion
- FTX (BNF): $ 2.5 billion
- Bitfinex (BNBBTC): $ 1.7 billion
Impact on market mood
The whale activity has a significant impact on the mood of the market, affecting price movements and the creation of investor behavior. These are some of the main forms of whales that affect the mood of the market:
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Speculation : Whales often participate in speculation, buying or selling cryptocurrencies at different prices for earnings. This speculative activity can increase prices if the whale buys low and sells high.
- Price handling : Whales can manipulate price movements storing or diluting delivery (adding or eliminating circulation coins). This can create a complacent cycle in which whales affect the price through purchase and sale activities.
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Market mood indicators : Whale activity is associated with a variety of market feelings rates, such as the relative force index (RSI) and the changing average (MA). As the whale activity increases, these indicators often increase, indicating the upward achievement potential.
- Risk Tolerance : Buying or sale activities can also affect investor risk tolerance. If whales buy large amounts of cryptocurrencies at low prices, this may indicate greater confidence in future asset price movements.
Case research: effect on Bitcoin
A remarkable example of Bitcoin whale activity is in 2017 Bull Run in Time. During this period, several significant whales, including Panter’s Capital and Bitwise Capital, accumulated a large amount of BTC. This led to an increase in prices, increasing the value of assets of approximately $ 1,000 per currency to more than $ 19,000 per currency.
Conclusion
Whale activity has become an important factor that forms the mood of the market in cryptocurrency markets. Because whales accumulate a great destination and participate in speculative trade, their purchase or sales activities can lead to price movement and influence investor behavior. Understanding the impact of the whale on the mood of the market, investors can better navigate the cryptocurrency market in the complex world.
Suggestions
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Monitor whales
: Continuous whale monitoring to obtain information on the trends and moods in the market.
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