Bitcoin price crossed the $6,000 mark for the first time in 2019. Although the price has retraced a bit, trading around $5,930 as at the time of writing, the upward momentum is still palpable by participants in the market.
In the cryptocurrency market, the term “crypto whales” is used to describe individuals or entities that hold very large volumes of cryptocurrencies. Considering the relatively small size of the cryptocurrency market, the actions of this group of traders usually have huge impacts on the overall market.
Crypto whales are considered to play huge roles in determining the direction of the current market. In essence, the market tends to move in the direction of their trades whenever they do. This ability gives the crypto whales power to “manipulate” the emerging market to their own advantage, at least in its present stage.
Smaller traders are safer when they trade in the same direction as the crypto whales. The current market sentiments favour a bullish outlook from these big players. This explains why platforms like CryptoFish are seeing an influx of traders who are taking up stakes and purchasing Bitcoin and other cryptocurrencies to beef up their investment portfolios.
The easy and convenient processes enabled by CryptoFish, especially the ability of customers to make purchases using their debit or credit cards makes the platform stand out as a liquidity provider for traders and investors.
Crypto whales are known to use different maneuvers to profit from the market, however market movement is not an exclusive prerogative of this class of traders.
As the market grows the ability of a few players to determine price movement diminishes until the stability determinant becomes more democratized.
Several questions have been asked as to the actual reason behind the sustained surge in price since the beginning of April 2019. Most analysts have used chart patterns and technical indicators to explain why the bulls are taking over the market, while some others believe it is in preparation for the entry of institutional investors.
Former Goldman Sachs banker, Per Wimmer believes that the current surge that Bitcoin is experiencing is as a result of the actions of big whales in the market.
Wimmer disagrees with the opinions that suggest that institutional investors have entered the crypto market. He noted that the increase in crypto crimes and exchange hacking is still keeping these group of investors away. However he believes that cryptocurrency as a technology is here to stay.
“Crypto is very niche. It is here to stay and remain for a considerable amount of time as a niche [investment].There is a degree of validity about crypto. I like the fact it is intimidating governments. I think it is great to have that aspect of it”, he said.
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