Crypto Whales Are Having Party on the Weekend!!

Deepshikha  |  Feb 12, 2021

Whales of the crypto-industry play a significant role in the manipulation of prices of crypto-assets. It had been seen many times that the market is either manipulated by the statements of crypto-whales or by their activities. However, the recent activity of such manipulation is seen on the first weekend of February 2021. Where the bullish behavior of the market suddenly faced a fall after surpassing $40,000. 

Strategic Crypto-Whales

Whales account for a large amount of BTC holdings. When compared with the BTC bull market of 2017, the number of accounts for BTC holdings have increased up to 3.7%. Crypto-whales seem to follow a strategy that helps them scoop more BTCs every time. 

According to the cryptoanalyst Lark Davis who closely analyzed the behavior of crypto-whales says that the basic strategy always circumstance only one main interest, i.e. gobbling more BTCs. They first shake the market via massive short selloff. That results in a panic sell situation for the small to medium-size investors. The sell-off via crypto whales creates a bearish behavior which further increases the fear among the investors. Eventually forcing them to sell their crypto at minimum loss. 

Tweets by Scott Minerd, the Global Chief Investment Officer of Guggenheim Partners, is doing the same job of manipulation. He first asked investors to pull their money off the table and then predicted that BTC will surpass $400,000 soon. Clearly, the two statements from the same person is a sign of manipulating the market for self well-being.  

This panic sell by investors brings a bearish stage in the market. And becomes a chief reason for sudden price fall. This is the time when big names of the industry start gobbling more assets and hence making the market bullish again. 

Don’t Be a Whale Food!

It is wise for investors to not take decisions in a hurry. If you are one of those who invested when the market is high, then selling in a panic is never a wiser decision. Rather hold your digital-assets, and don’t let big names of the industry scoop your crypto-assets that easily. 

Also, the ups and downs in any market are bound to happen anyways. The bottom line is to understand the reason behind the price sink. Is it the outcome of some tweet, market conditions, or some creepy strategy of the crypto-whales?

Related News