The power of whales: understanding the role of investors widely on the cryptocurrency market
The cryptocurrencies have received considerable attention and popularity in the last decade, and many people have invested their hard -working money. However, one of the aspects, which was largely ignored, is the role of large -scale investors, so -called “whales” representing a significant amount of cryptocurrency. These whales play a decisive role in developing market dynamics, and their influence can have a significant impact on the general cryptocurrency performance.
What are the whales?
Whales are a large net value or organizations that have a significant amount of cryptocurrencies. They usually exceed $ 1 million in evaluation, but this number can vary greatly, depending on cryptocurrency and specific source. Some of the remarkable examples of whales are the following:
* Fidelity Alameda research:
is a coverage fund with over 100 million dollars.
* Bitfinex CEO, Charles Lee: It is estimated to be one of the largest traders in Bitcoin, with $ 2.5 billion in assets.
* The Japanese government:
officially reported to keep about $ 1.4 billion in cryptocurrency.
How does the whales affect the cryptocurrency markets?
Whales have a significant impact on cryptocurrencies due to their high scale actions and commercial activities. Here are some methods affecting the market dynamics:
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Speculative trade: Whales often engage in speculative trade, swollen to buy or sell cryptocurrencies to make a profit. This can lead to the increase or lowering of the price, depending on the whale’s intention.
- Market volatility: Whale can aggravate market volatility through pricing fluctuations with their trading activities. If a whale accumulates the large position of a certain cryptocurrency, it can lead to a rapid price inflation and can be beneficial for other traders who buy small sales and sell high sales.
- Management of order flow: Whale can affect the management flow management on the exchange markets, affecting the liquidity and general efficiency of the market. By shopping or selling at different prices, whales can handle orders and create a blockage or congestion.
- Basic trading models: Whales often have basic trading models, such as keeping a certain cryptocurrency for a longer period of time that may indicate their confidence in long -term perspectives.
Effect of whale behavior on market emotions
It has been shown that whale’s behavior has a significant impact on market emotions. For example:
* Fear and greed: Purchase or sale activities can cause fear and greed on the market. When whales buy a certain cryptocurrency, it can lead to increased price assessment, while whale sales can cause sale.
* Market efficiency: Whale behavior can also affect market efficiency. If whales hold a position for a longer period, it can reduce liquidity and be less effective on the market.
The Whales: Study of their behavioral evidence
To better understand the role of whales on the cryptocurrency market, the researchers examined their behaviors in different methods:
- Automatic learning algorithms: Researchers have developed automatic learning algorithms to analyze whale data, such as trading, dimensions and market emotions.
- Natural language processing (NLP): NLP techniques are used to analyze text -based communication between whales, providing a perspective on cryptocurrencies and feelings.
The study shows that whales are generally more reasonable in decision making than retailers. Often exposed:
- Rational expectations: Whale tends to future prices in cryptocurrency.
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