Understanding Dumping
Dumping refers to a sudden decline in the market caused by external factors, such as global economic turmoil or a specific news story. This phenomenon has been observed in various instances throughout history.
One example of dumping occurs when Bitcoin approaches a halving event. This event historically triggers significant volatility in the market, leading to dumping.
Another notable scenario is when a cryptocurrency’s price repeatedly encounters a resistance level. In May 2018, Bitcoin was on an upward trend, aiming to surpass the $10,000 mark. However, it faced strong rejection around $10,100 and eventually reached $10,200.
At this point, large investors known as whales, who hold substantial amounts of coins, initiated a sell-off just below the $10,000 mark. Consequently, the value of Bitcoin, the world’s most well-known cryptocurrency, experienced a rapid decline within minutes.
It is likely that these whales then re-entered the market to purchase more Bitcoin at a significantly lower price, resulting in substantial profits.
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Glossary
Dumping
Understanding Dumping
Dumping refers to a sudden decline in the market caused by external factors, such as global economic turmoil or a specific news story. This phenomenon has been observed in various instances throughout history.
One example of dumping occurs when Bitcoin approaches a halving event. This event historically triggers significant volatility in the market, leading to dumping.
Another notable scenario is when a cryptocurrency’s price repeatedly encounters a resistance level. In May 2018, Bitcoin was on an upward trend, aiming to surpass the $10,000 mark. However, it faced strong rejection around $10,100 and eventually reached $10,200.
At this point, large investors known as whales, who hold substantial amounts of coins, initiated a sell-off just below the $10,000 mark. Consequently, the value of Bitcoin, the world’s most well-known cryptocurrency, experienced a rapid decline within minutes.
It is likely that these whales then re-entered the market to purchase more Bitcoin at a significantly lower price, resulting in substantial profits.
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