How Do Whales Influence Liquidity in the Crypto Market?
Whales, defined as large holders of cryptocurrency, directly impact liquidity through their transactions. When they deposit or withdraw substantial amounts from exchanges, it can change how much liquidity is available for trading. For instance, if a whale pulls out a large sum, the market might end up with less liquidity, making it harder for others to buy or sell without affecting the price. On the other hand, when whales deposit their coins, they have the potential to increase the liquidity available for trades, thus easing the buying process for other traders.
But, interestingly, despite this ability to shift the market’s dynamics, these actions rarely lead to lasting changes in price levels. The core valuation of a cryptocurrency…
