When Bitcoin (BTC) moves sideways, crypto exchanges and Bitcoin whales do not make much money. That’s why Bitcoin whales are badly manipulating markets.
Bitcoin’s popularity has increased in the past few months. While retail investors have always adopted BTC, institutional investors have begun to deal with Bitcoin significantly.
It is known to all that manipulations can occur in the cryptocurrency market, including new retail investors. So far, the sudden leaps and uncontrolled drops of Bitcoin have done a lot of damage to retail investors.
How BTC Whales Perform Market Manipulation
It is a myth that bitcoin (BTC) whales are only responsible for accidents. Whales control the markets with both bear traps and bull traps. If they cause the bear trap, they can get investors to sell early. If there is a Bull trap, they can push investors to buy crazy. Thus, Bitcoin whales play with traders’ psychology. Fear or FOMO causes investors to make wrong decisions.
BTC exchanges can also be a whale. Especially in derivative exchanges where leveraged transactions are made, transactions that cause investors to be rectified can be made. In this way, cryptocurrency exchanges can earn millions of dollars.
For this reason, undoubtedly, traders who do retail daily transactions are significantly disadvantaged. This is why most people lose money in Bitcoin transactions.
How many BTCs are needed for manipulation?
Market manipulation may seem like a big word. People think that manipulation can be done with billions of dollars and only by large companies. However, this is not true.
If we look at the fifteen minute time interval for BTC / USD, the volume traded during the crash was only around 3,500 BTC. The decline occurred in less than 5 minutes.
3,500 BTC is equivalent to approximately $ 25 million. Whales didn’t need to sell this 3,500 Bitcoin. Even if there were 2,000 BTC sold, the rest were backed by FOMO and its investors.
Therefore, Bitcoin whales can cause market crash with $ 15 million or less. This is a small amount compared to the size of transactions that take place on the stock exchange every day. But for whales, these transactions may have at least $ 100 million in return!