About the Whale Phenomenon in Beloved Cryptocurrency World

The whale phenomenon is a word intended for someone who holds most of a Cryptocurrency asset. For example, a person who owns many assets of Bitcoin is considered a Whale.

With this large holding, if they decide to sell the asset one day, the market suddenly has a lot of stock and causes a significant price movement.

For example, the price of Bitcoin had jumped to a level above (this happened because many people were buying Bitcoin), but then suddenly, the price dropped in the next few months.

If examined, of course, the above incident occurred because several parties (the majority of the whales) had bought or sold Bitcoin at that time, so the price could go up very much at one time and could go down very much at one time or another.

The specialty of the whale phenomenon

As I said earlier, this Whale is a phenomenon or figure of a vibrant person who keeps many assets (e.g., Bitcoin, etc.) in his pocket as an investment.

Bitcoin and almost all other Cryptocurrency assets or outside Cryptocurrency must also have several Whales. However, since the Cryptocurrency world is very price-sensitive, the presence of Whale in this industry will undoubtedly shake up market conditions.

This is also due to the much smaller volume of Cryptocurrency and less liquidity on Cryptocurrency exchanges. So, these whales are trapped in small ponds without sufficient liquidity, where pond conditions can significantly affect the slightest movement (such as buying or selling).

Cryptocurrency assets are still highly concentrated in nature. The sudden growth of Bitcoin means that most of the market is owned by a small percentage of traders who are lucky enough to buy a lot of Bitcoin when the price is low.

The person who owns most of the market influences the price when he sells the asset. The impact of the Whale phenomenon also depends on the token of Cryptocurrency and the source of wallet transactions.

Investors should leave the ship if there are consistently uneven coin purse sales and take the time to identify wallets belonging to significant holders or teams working on specific cryptocurrency projects.

It's hard to say whether this coin or phenomenon moves to exchanges or just fake news. Since many Whale secretly does this, take some time to analyze this before concluding. Because many people misread this step and activate actions that can be counterproductive.