Sometimes we see that someone just bought a huge amount of
$BTC ,
$ETH , or another coin, and we think , "Yes! The price will go up for sure!" But then we check... and the price keeps dropping. Confusing right? 🤧
Here's why it happens 👇:
💥Market Size vs Individual Buying
Even if someone buys $50 million in BTC, the market is massive. For example, BTC's daily trading volume can be over $20 billion, so a single buy might barely move the price.
💥Selling Pressure From Others
Big buys can be immediately offset if other whales are selling. Last year, we saw a whale buy ETH, but soon after, another large holder sold, keeping the price almost unchanged.
💥Macro Events
Global news affects crypto too. For instance, if the US announces higher interest rate, investors may sell crypto for safer assets, even if whales are buying.
💥Exchange and Liquidity Factors
Sometime a huge buy doesn't push the price because there aren't enough sell orders at higher prices. Think of it like trying to fill a swimming pool with a garden hose, you need more supply or demand to see movement.
💥Market Sentiment and Fear
Even with big purchase, fear can dominate. For example, during crypto dipafter FTX news, whales were buying, but the market stayed in panic mode, keeping prices down.
💥Delayed Reaction
Markets don't always react instantly. A whale buy might influence price slowly over hours or days as others notice and follow.
So, seeing someone buy a lot doesn't guarantee a pump. Crypto is unpredictable, and the market reacts to many factors at once. Always DYOR! We can analyze and guess, but surprises happen.
#BTC #Market_Update #CZAMAonBinanceSquare