What Is a Fish?
A fish, also known as a minnow, refers to an individual who possesses small amounts of cryptocurrencies and is often subject to the influence of whales who manipulate the market.
Although the actions of minnows do not typically have a significant impact on market share, this can change as their holdings increase.
As minnows accumulate more cryptocurrencies, they can progress to become dolphins and eventually achieve whale status. This change in status grants these players the ability to exert substantial influence over cryptocurrency prices.
For example, Bitcoin dolphins are characterized as players who place orders of 1,000 BTC or more on cryptocurrency exchanges.
In contrast, Bitcoin whales are typically hedge funds or large institutional entities that place massive orders surpassing those made by dolphins.
Notable examples of BTC whales include Tesla and MicroStrategy, among others.
Whale orders are typically executed through special arrangements with exchanges and are not visible to regular retail traders.
The cryptocurrency movements of BTC whales can have a significant impact on the BTC market, resulting in increased volatility, significant price swings, and reduced liquidity.
It is important to acknowledge that BTC whales establish the trend for minnows to speculate on the future direction of cryptocurrency prices.
This can create a concerning cycle where the price of cryptocurrencies becomes detached from the underlying factors driving their value.