Whale

A whale is a term used in the cryptocurrency world to describe an investor or entity holding a significant amount of a particular cryptocurrency. Whales can have a major impact on the market, as their large transactions can cause sharp price movements and affect liquidity. Notable whales include early Bitcoin investors, institutional funds, and large cryptocurrency exchanges.

Whales often use strategies like “spoofing” (placing and canceling large orders to manipulate the market) or “wash trading” (creating artificial market activity). Traders closely monitor whale movements by analyzing blockchain transactions, particularly through whale alerts, which notify of large crypto transfers. Whales can both destabilize the market and act as long-term investors, helping to stabilize the price of a cryptocurrency.