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"Whale" investors in the cryptocurrency market, holding large amounts of digital assets, significantly influence price volatility. Their substantial trades can trigger sharp price movements, as markets often react to their buying or selling patterns. When a whale buys heavily, it can signal confidence, driving prices up as smaller investors follow. Conversely, a large sell-off may spark panic, causing prices to plummet. These actions create ripple effects, amplified by low liquidity in some crypto markets. Whales also manipulate prices through tactics like "spoofing," placing and canceling large orders to mislead traders. While their impact is undeniable, predicting their moves remains challenging due to pseudonymity and market complexity. As crypto matures, regulatory oversight might curb their dominance, but for now, whales remain key drivers of volatility.
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