$BTC
Why do Bitcoin whales influence the market?
Whales have a significant influence on market dynamics. Their enormous holdings give them the power to affect the supply and demand of Bitcoin, triggering price fluctuations with their trades. When whales increase their Bitcoin reserves, prices tend to soar, while selling portions of their holdings can lead to declines.
By holding substantial amounts of cryptocurrencies, crypto asset whales can create scarcity, driving demand and value. Large transactions made by whales can trigger significant price changes, guiding the actions of other traders.
These whales often operate under public scrutiny, with their wallets tracked by the wider trading community. As a result, their trading decisions or anticipated moves can cause major price changes as traders mimic their actions.
Some Bitcoin whales choose to conduct over-the-counter (OTC) cryptocurrency trades to minimize their impact on prices, while others use exchanges to manipulate markets by signaling large buys or sells.
