$BTC
In the Crypto market, as well as in the financial market in general, large capital flows will determine price trends, large shareholders dominate small shareholders, whales and sharks devour small fish ...
Crypto projects have a governance mechanism called "consensus mechanism", which operates similarly to the management mechanism of a company. That is, whoever has more votes makes the decision (specifically here is the amount of tokens held). This is also easy to understand because decisions for the project will directly affect the interests of token holders, so the one who holds more tokens should be the one to decide. Therefore, whales and sharks in the crypto space are similar to large shareholders in the stock market. Thus, their movements will have a significant impact on the price of the tokens they hold.
In the stock market, we are also protected by the state with regulations to prevent price manipulation by large shareholders, such as large shareholders wanting to buy or sell stocks must seek permission from the State Securities Commission and publicly disclose information. In this crypto market, however, that is not the case. Whales, sharks, and market makers can freely manipulate prices - only the small fish are suffering 😂
Therefore, to accurately assess market trends, monitoring large capital flows in and out is extremely important. Some people may check reputable on-chain information about the movements of large funds, organizations, or whale wallets. However, one must also be cautious of fake information aimed at misleading.
On Binance, they provide statistical data on large capital flows in and out in real-time over the past 5 days, which you can take advantage of without needing to search far.
Additionally, you must always remember that the crypto market has a characteristic that no financial market has, which is that most altcoins are affected by price fluctuations of #BTC . Therefore, just by monitoring the price fluctuations of BTC, one can understand the price trend of the entire market. Regardless of what coins you are trading, you should also check BTC to see how it reacts.
