Everyone has heard about crypto whales. Few people know what they really are.
A crypto whale is a wallet that holds a very large amount of a coin. For Bitcoin, a wallet with over 1,000 BTC is already considered a whale. For smaller coins, the threshold is much lower.
Whales do not appear overnight. They form in three clear ways.
First. Early investors. They bought Bitcoin at 100 or 1,000 dollars and never sold.
Second. Funds and companies. They enter the market with tens or hundreds of millions of dollars.
Third. Exchanges and pools. They manage the funds of many users in a single wallet.
What do whales do in the market. They move the price. Not by magic, but by volume.
When a whale buys heavily, liquidity drops and the price rises fast.
When a whale sells, sharp drops appear and panic spreads.
A simple example.
A whale sells 5,000 BTC on a low volume market. Buy orders get consumed fast. The price drops within minutes. Retail traders panic sell. The whale buys back lower.
Whales do not trade randomly. They track emotions.
Fear. Greed. Liquidations. Your stop losses are often their target.
This is why you sometimes see violent drops without news. Or fast pumps followed by dumps. In many cases, a whale just moved a large piece on the board.
The real question is not if whales exist.
The real question is if you track their moves or react after they already finished the play.
What do you think. Do whales protect the market or manipulate it. Write in the comments.
