The whales, who turned the drops into opportunities, bought again with the fall of Bitcoin and altcoins.
Whales Turn Fall into Opportunity
The cryptocurrency market has been going through a very volatile period for a long time. With Bitcoin falling below $19,000, other cryptocurrencies also suffered serious losses. The whales, who turned the drops into opportunities, bought again with the fall of Bitcoin and altcoins. It added 478 more Bitcoins at $18,900 to the largest Bitcoin whale assets over the exchange. Before this purchase, Balina had 136,382 Bitcoins among her assets. The same whale made a huge purchase on August 29 by purchasing 1,153 BTC.
What is Whale?
There are different descriptions for various investors in the cryptocurrency ecosystem. If we compare the cryptocurrency market to an ocean, the biggest player in the oceans would be whales. That’s why investors who hold large amounts of money in crypto money markets and can change the course of many coins are called whales.
How Do Whales Make Money?
According to popular research firm Chainalysis, there are two types of whales. The first is mining whales, and the other is opportunistic whales who take advantage of the fall in Bitcoin price. Mining whales apply the HODL technique, which is a popular choice in the cryptocurrency world, and hold their Bitcoins. Opportunistic whales, as the name suggests, turn the crisis into an opportunity and increase the amount of Bitcoin in their hands by buying low.
What Strategy Do Whales Follow?
I think it would be more understandable if we gave an example of what kind of strategy the whales follow. Consider a whale holding 3,000 Bitcoins. He puts all the Bitcoin in his hands on sale at once, sets a price below the market value for each Bitcoin, prepares his trap and starts to wait like a hunter. The 3,000 Bitcoins put up for sale at once make the dolphins in the ocean and the less experienced whales think “I should sell my Bitcoins before I lose any more money”. When this is the case, prices are falling even more with this panic, just at this time, the whales waiting for their prey attack and go to profit by buying Bitcoin from low with the cash they get as a result of Bitcoin sales. While small investors are affected by these panicked buying and selling, whales profit.
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