Who are market whales?
'Market whales' refer to individuals or entities that have invested a large amount of money in the market. They hold a significant amount of circulating coins or tokens, which gives them enough power to manipulate the market at will.
When the market is in a bull phase (rising), whales can sell a large amount of held assets to trigger a price drop.
When the market is in a bear phase (declining), they can inject liquidity (buying in large amounts) to push prices back up.
When we talk about 'crypto whales', there are primarily two categories:
1. Market whales
These whales hold a large amount of Bitcoin and have the ability to influence the entire crypto market. In the crypto world, whenever analyzing the overall market, the first focus is on Bitcoin.
Why Bitcoin $BTC?
Bitcoin remains the most powerful and influential crypto asset.
Its blockchain is the most secure, decentralized, and trusted globally. (Scalability is important, but security is key!) Bitcoin accounts for over 54% of the entire crypto market's market cap.
Examples of market whales include:
Governments:
U.S. Government
German Government
Chinese Government
Salvadoran Government
(These governments hold a large amount of Bitcoin, with about 90% of crypto assets in BTC)
Institutional investors:
Blackstone Group
MicroStrategy (Michael Saylor)
Fidelity Investments
Standard Chartered Bank
Grayscale Investments
(These institutions also invest heavily in Bitcoin, influencing the broader market.)
Whenever these whales buy or sell, the entire crypto market reacts positively or negatively!
2. Token whales
These whales dominate a single token or coin.
Example:
Imagine a token named$TRUMP with a market cap of $2 billion.
If you own 10% of its total supply, you are considered a$TRUMP whale.
Impact:
If you decide to sell or there are rumors about your sale, this will cause panic among other holders, leading to a$TRUMP
price crash.
(This is why we also pay attention to investor reputation in fundamental analysis.)
Important:
Token whales only affect their specific tokens.
Market whales affect the entire crypto market.
Understanding whales = Understanding market trends!
