Mika
VIP Contributor
Who are the whales?
A whale is the term used for big investors. They are present everywhere from the stock market to the crypto market.
What do whales do?
Whales put a lot of money on certain assets. When they start investing, the value of the asset will go up. At a certain point, the whales will start short selling, thus causing the market to fall. While the whales make money, the rest of the investors, mostly small investors lose money.
Whales are notorious for causing market prices to fluctuate by buying in large quantities and then selling all of their holdings. When they buy, they create demand in the market. Demand creates a rise in the price. When the price has risen sufficiently, the whales begin to sell. When short selling occurs, there will be more supply, and we all know when there is supply the price will fall.
When you are investing, make sure you are aware of market manipulation.
A whale is the term used for big investors. They are present everywhere from the stock market to the crypto market.
What do whales do?
Whales put a lot of money on certain assets. When they start investing, the value of the asset will go up. At a certain point, the whales will start short selling, thus causing the market to fall. While the whales make money, the rest of the investors, mostly small investors lose money.
Whales are notorious for causing market prices to fluctuate by buying in large quantities and then selling all of their holdings. When they buy, they create demand in the market. Demand creates a rise in the price. When the price has risen sufficiently, the whales begin to sell. When short selling occurs, there will be more supply, and we all know when there is supply the price will fall.
When you are investing, make sure you are aware of market manipulation.
