Whales are also notorious for bluffing. In cryptocurrency exchanges, buy and sell orders can be created at different prices from the spot price.

Whales can build a wall at a target price by entering a very hefty trade order on high-volume exchanges like Binance, FTX, OKX, or Coinbase.

As an example, placing a 3,000 BTC buy order at a lower price than the spot price could create a support level for Bitcoin.

The whale will cancel the trade order if it is indeed bluffing when the price of BTC approaches the order level if it is indeed bluffing.

It is not uncommon for cryptocurrency whales to possess enormous amounts of cryptocurrency. A total of 85 Bitcoin wallets hold 15% of all Bitcoins in circulation.

In total, there are over 42% of Bitcoins in circulation in the 2200 wallets holding the most Bitcoins. A total of $185 billion is involved.

Whales, individuals or entities with substantial cryptocurrency holdings, possess the power to influence the market without directly trading Bitcoin (BTC). Through strategic actions such as spreading rumors, issuing misleading statements, or coordinating large-scale transactions off-exchange, whales can create artificial demand or supply shocks, impacting market sentiment and prices. Furthermore, their significant holdings allow them to execute coordinated buy or sell orders on exchanges, triggering cascading effects on price movements. Additionally, whales may employ sophisticated trading algorithms or engage in margin trading to amplify their market influence. The opaque nature of cryptocurrency markets and the concentration of wealth among a few entities provide fertile ground for whale manipulation, highlighting the need for vigilant oversight and risk management strategies for traders and investors.