Let’s briefly talk about the reason why we track the trading volume of institutions and large investors in spot trading.

Large amount of funds: Large bookmakers usually have a large amount of funds, and they are able to carry out large-scale buying and selling operations. When large market makers buy or sell large amounts of currency, it causes significant changes in the supply and demand relationship in the market, thus affecting stock prices.

Market signals: The operations of large bookmakers are often regarded as important signals by market participants. If a major banker begins to buy a certain currency on a large scale, other investors may think that the currency has potential for appreciation and follow up to buy, pushing the price up. On the other hand, if big market makers start selling coins on a large scale, other investors may think that the currency is about to fall and sell one after another, causing the price to fall.

Liquidity impact: Large-scale transactions will affect market liquidity. When big bookmakers buy large amounts of coins, it reduces the number of coins available for trading on the market, increases buying pressure, and causes prices to rise. On the contrary, when big market makers sell a large amount of coins, it will increase the supply on the market, increase selling pressure, and cause prices to fall.

Market manipulation: In some cases, large bookmakers may use their financial advantages and market influence to manipulate currency prices through a series of operations to achieve their own profits. For example, a large market maker may push up the price of a coin by buying heavily and then selling at a high price to make a profit.

These factors make the buying and selling behavior of large bookmakers have a greater impact on market prices. Therefore, we must be able to monitor the price trend of the currency, so as to avoid ourselves being used as fuel by the dealers and avoid being carried away by the temporary stretching of the currency price.