The latest developments affecting the prices of major cryptocurrencies, specifically the impact of ETF funds on individual market whales.
This topic interests individual traders because it touches on their relationship with the market after the entry of major financial institutions.
🐋 Goodbye to the dominance of old whales? How ETF funds changed the game!
For a long time, the cryptocurrency market has been accustomed to the term 'whales', which refers to wealthy individuals who own large amounts of Bitcoin (BTC) or Ethereum (ETH) and have the ability to move markets with sudden buy or sell decisions.
But, with the introduction of exchange-traded spot funds (Spot ETFs) into the scene, has the era of the individual whale ended?
Institutional shift: a change in the center of power
ETF funds
A new type of 'whales' has entered the market, which are giant financial institutions buying BTC for billions of dollars on behalf of traditional investors. This shift means:
The constant buyer: institutions are buying BTC in large quantities and continuously to meet the demand for the funds. This creates a stable and solid demand force that has not existed before.
Diminished impact of the individual: when an individual whale sells 5,000 BTC, it used to cause a significant shock in the market. Today, this sale can be easily absorbed by daily ETF purchases that exceed this amount.
Reduced manipulation: it is difficult for any individual whale to manipulate the market in the face of the enormous and regulated cash flows entering the market through organized financial pathways.
Opportunities for the individual trader in the new era
Is this bad for the individual trader? On the contrary!
Sudden volatility decrease: the reduced power of individual whales decreases 'random fluctuations' or 'violent speculations' that used to occur without analytical basis, making technical analysis more effective.
Long-term market stability: ETFs make BTC more correlated to traditional financial assets, enhancing stability and legitimacy, and assisting in the growth of the underlying value over the long term.
In summary: we are transitioning from a market driven by wealthy individuals to a market driven by institutional rules and organized collective demand. The smart trader is one who recognizes this shift and invests based on large institutional flows rather than chasing the erratic decisions of whales.
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