Do Whales Suffer From a Bearish Market Or are They the Ones Responsible For it?
Hello Everyone,
Recently, it is no longer news that we crypto writers, holders, traders and even developers are all facing a nasty looking bearish market. With the downward movement of almost every coin from left to right, the waking up to SMS pop-ups with details about your liquidation point coming close unless you add more capital to avoid it, your spot wallet balance looking like a phone number but this time, not the long phone number, instead it looks like a short number like 9-1-1, or even your saved up USDT cash lacking the financial strength and good looks it once had, because you have successfully withdrawn almost of all your funds, leaving the scrap that the platform didn’t allow you to withdraw, so you are now left with a USDT number that looks like a poor G.P.A.
I can tell you these and more have been the faith of some African traders most especially Nigerians because they are becoming sceptical about investing in crypto since various politics and controversies surrounding crypto like the fact that the Nigerian Government has ban crypto, and other countries are looking for ways to completely regulate Binance or better still put its entire operations in the hands of the government and when they cannot achieve that they kick the exchange platform out of their country. These and many more have become the standing-out reason some people no longer want to invest, I remember one of my friends telling me that he had to withdraw his investments from his crypto portfolio because the bearish market has dealt with him or as he said it in his own words “shown pepper”.
As for me being human, my human instincts began to think about these things, so I pondered a little cause it looked like their talks and facts were making sense and matching up, but I had to stop and examine my financial life. Then I realized that I have grown into a man that can now afford things for himself without having to rely on anyone for a single penny and this wasn’t because of the bullish or bearish state of the crypto market. This was because Hive allowed me to earn in crypto by dishing out useful content on my blockchain blog. So I would say to those Nigerians losing hope in crypto, try to look for a way to earn instead in crypto then you wouldn't be worried about losing your capital since it is money you earned. But if I am being truthful, which I try to be in all my articles, I still have a question that remains unanswered, “do whales lose money during the bearish market or are they responsible for it?”
So I went digging, and then I found out through my research that they are involved in both, they suffer from it and sometimes they are responsible for it. The whales can be responsible for a bearish market when they start to pull out their large liquidity from a crypto project. A big example is when Elon Musk openly withdrew his support for bitcoin because its mining contributes to Global Warming, thereby making the price of bitcoin plummet.
Also, from an article about the CEO of Microstrategy hitting a margin call if the bearish continues to persevere by yahoo finance. The article talked about how Michael Saylor is a strong supporter of bitcoin and he strongly believes in it so much that he went ahead to take loans from the banks to buy more bitcoins despite the dip. The article shared more light on the fact that the Billionaire CEO may face a margin call if his investment strategy in bitcoin doesn’t play out well. This got me to understand that even big whales have a lot to lose when it comes to crypto and also a lot to gain when it plays out well.
In conclusion...
My question about whales benefiting or being responsible has an answer of both, which means they can be responsible because of their huge capital that’s pushing the project and they can also lose from it too when the project’s sustenance is way bigger than their large funds.
Thanks For Reading!
Did you know?
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