Whales, or large cryptocurrency holders, significantly impact the market through massive trades. Their buying can drive prices up, while sudden sell-offs create volatility. Whales often manipulate markets using tactics like "pump and dump" or "spoofing," misleading smaller traders. Their activity influences liquidity, sometimes making assets harder to trade. Exchanges and traders closely monitor whale wallets for potential price movements. While they can bring stability by holding large amounts, their dominance can also discourage decentralization. Understanding whale behavior helps traders anticipate market shifts and manage risks effectively. Their influence remains a key factor in crypto price fluctuations and market psychology.
