What caused the sudden market decline? One primary factor could be the influence of "whales," or large investors.
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Market downturns may result from a variety of reasons, and the involvement of whales can have a significant impact. Here are several ways in which whales might contribute to a sudden market decline:
1. Massive Sell Orders: Whales selling a substantial portion of their assets can flood the market with supply, driving prices down.
2. Market Sentiment: Whales often possess insights or analysis inaccessible to smaller investors. Their actions can signal underlying issues, prompting others to sell.
3. Profit-Taking: Following significant price increases, whales may sell to capitalize on profits, triggering a sell-off if other investors believe the market has peaked.
4. Liquidity Issues: Large transactions by whales can strain liquidity, leading to heightened volatility and price declines.
5. Market Manipulation: At times, whales may intentionally lower prices to buy assets at lower rates later.