· "Smart Money" Selling? Whales are often seen as "smart money"; they have gone through multiple bull and bear markets and have a deep understanding of the market. Their selling behavior can be interpreted as a signal that "prices have peaked" or "they believe there is limited upside potential in the future," triggering widespread FUD (Fear, Uncertainty, Doubt) in the market. · Erosion of Faith: One of Bitcoin's core narratives is "digital gold against inflation," and the selling by the most steadfast HODLers (these whales) may cause some investors to waver in their belief in "long-term holding."
2. Direct Market Impact (Supply and Demand)
· Increased Market Selling Pressure: Whales hold massive amounts of assets; even selling a small portion can create huge sell orders in the market. This directly disrupts the supply-demand balance and exerts downward pressure on prices. · Testing Market Depth: The selling behavior of whales can test the current market's absorption capacity. If the market can quickly absorb these large sell orders without a price crash, it indicates strong buying power below, which is a healthy sign for a bull market. Conversely, if it triggers a chain reaction of sell-offs, it may lead to a deep correction.
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