Whale Shorts and Small Fintech Startups: Strategies for Survival in the Crypto Market
The crypto market is a wild ride, especially when whales decide to flex their muscles with large short positions. These moves can create crazy volatility and change how smaller investors and startups trade. Let’s unpack what this means for fintech startups and how they can weather the storm.
The Ripple Effect of Large Short Positions
When whales short Bitcoin and other cryptocurrencies, it can get messy real quick. Prices can swing wildly, often resulting in short squeezes. Think of it as a chain reaction: a sudden rise in price forces those holding short positions to buy back assets to cover their losses, which then pushes prices even higher. For small fintech startups trying to navigate the world of crypto payments, this can be a…
