In the world of cryptocurrencies, "whales" are individuals or entities that hold very large amounts of a specific cryptocurrency, to the extent that they have the ability to influence the market with their selling or buying prices. Here are the full details about them:
🐋 Who are the whales exactly?
Whales are:
Large investors or massive institutions (like investment funds or corporations).
Individual wallets that hold thousands or millions of coins (like more than 1000 Bitcoin).
In some cases: the founders of the cryptocurrency projects themselves.
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💥 What do they do?
1. Market movement:
If they suddenly sell a massive amount of cryptocurrency, the price drops quickly (selling pressure).
If they buy a large quantity, the price rises (sudden demand).
2. Inducing panic or greed:
They make calculated moves such as selling small amounts in batches to stimulate selling (FUD).
or sudden buying to make others enter the market (FOMO).
3. Manipulation:
Some of them use strategies like spoofing (placing large buy/sell orders and then removing them) or wash trading.
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🔍 How do we know there are whales?
Through:
Websites tracking large wallets such as:
Whale Alert
Arkham Intelligence
Monitoring large movements between wallets and exchanges (for example: transferring 10,000 BTC from an unknown wallet to Binance).
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🧠 Why is it important to know about them?
Because:
Their movements provide signals about the general market trend.
Small traders can be quickly affected by their actions.
They can be used to identify smart entry or exit opportunities in the market.
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📌 Real-world example:
In 2021, a wallet containing 96,000 BTC was suddenly transferred to Coinbase. This led to a significant drop in the price of Bitcoin within hours.