What effect does a whale in the cryptosystem has on the volatility of cryptocurrency
A question mostly asked by new investors or newbies in the cryptosystem is the one that ponders the mind of many people involved in the cryptosystem which is "what really causes the rise and fall in the crypto coin prices" which can also be termed as what causes the volatility in cryptocurrency.
Apart from some aside reasons that causes this volatility which are government regulations, media hype and the likes. The main reason behind the high volatility in the cryptosytem is the works of the whales in the system. Crypto whales in lame terms are people or organizations who have a large amount of wealth which they use in manipulating the system.
A whale has quite a significant effect it has on the crypto volatility as they can withdraw or invest there money in the system thereby causing the fall or the rise in prices respectively. Most probably when a whale who has a very significant amount of wealth in the system decides to sell his acquired coin, the particular coin sold will most probably decline in price likewise when they also invest heavily into it, it also will most probably increase in price.
I would say a whale has quite a significant role being played in the volatility of cryptocurrency in general.
What do you also think has a great effect on the volatility of cryptocurrency.
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