#What is a Bearwhale?
A bearwhale is an investor who owns a large amount of a particular cryptocurrency and has the ability to influence its price. The term was coined in 2013 when one such investor, known as “BearWhale”, sold 30,000 Bitcoin at once on the Mt. Gox exchange. This caused panic selling among other investors which drove down the price significantly.
#How Does It Affect Prices?
The effects of bearwhales on prices can be significant depending on their size and trading activity. When they sell large amounts at once, it creates downward pressure on prices due to increased supply relative to demand for that particular asset. This can lead to rapid drops in value if there are not enough buyers available to purchase all of the coins being sold. On the other hand, when these whales buy large quantities at once they create upward pressure by increasing demand relative to supply which can result in sudden increases in value for that asset if there are enough sellers willing to part with their holdings at those prices.
#Why Are They Called “Bearwhales”?
The origins of this name come from an incident involving one particular whale investor back in 2013 known as “BearWhale” who sold 30,000 Bitcoin worth millions of dollars all at once causing panic selling among investors resulting into a drop in price across markets worldwide. From then onwards any major trader or holder capable of influencing market movements came under this label – ‘bearwhales’- regardless of whether they were actually bears or bulls (traders betting on decreasing/increasing prices).
