Bitcoin Whales are Controlling the Market
Bitcoin whales are reckoning forces in crypto exchanges. Therefore, their dominance is being felt in the crypto market because of their massive liquidity.
Bitcoin whales have been dominant in the market based on their massive liquidity. Tyler Swope, an expert crypto trader, has the viewpoint that Bitcoin whales have become overly manipulative this summer.
Bitcoin’s choppy price chart
As per Swope’s observation, Bitcoin has witnessed numerous pumps and dumps in a span of two weeks. As a result, a clear manipulation has emerged from nine thousand dollars ($9,000) to eleven thousand dollars ($ 11,000). Notably, whales have been taking advantage of the immediate volatile price swings.
Conversely, Swope reinforces his observation with Sunday's abrupt Bitcoin price drop. Specifically, an all-day trade was prevailing beyond nine thousand five hundred dollars ($9,500), but an unexpected bear made it drip to nine thousand two hundred and sixty-five dollars ($9,265). Later on, bulls came calling to retrace back to nine thousand five hundred and seven dollars ($9,507). Astonishingly, all this trend happened within an hour.
Bitcoin whales on Bitfinex
Swope found the dump dragging Bitcoin price to nine thousand and one hundred dollars ($9,100) on Bitfinex. Notably, Bitfinex is an exchange that permits margin trading. As a result, the whales in operation instigated a well-orchestrated bear trap. Swope viewed this as a wreaking havoc procedure as different positions were witnessed on this exchange.
The Bitcoin whales on Bitfinex had different intentions such as the urge to liquidate. The other objective entailed luring novice traders into the manipulation that bears were calling. These traders were, therefore, unfortunate to undertake short positions. The Whales had selfish motives as they immediately went into a buying spree. As a result, these traders lost.
Conversely, other flash crashes have existed. For instance, on July 14, 2019, ETH price crashed on Bitstamp, a crypto exchange. As a result, a ripple effect was witnessed on another exchange called BitMEX.
Swope asserted Bitcoin Whales are reigning supreme in crypto exchanges. This is based on their self-interest at the expense of other traders and the market at large.
Image source: Shutterstock
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