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2,117

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Marketcap:

$2,120,510,893,508

Volume 24h:

$49,881,013,638

Bearwhale

What does Bearwhale mean in crypto terms?

Bearwhale is a term used in cryptocurrency markets, combining the words 'bear' and 'whale.' Let's break down these two terms individually first. A 'bear' is a term borrowed from traditional financial markets and is used to describe a situation where market prices are falling or expected to fall.

A bear market is typically characterized by widespread pessimism and negative sentiment. A 'whale,' in the context of cryptocurrencies, refers to an individual or entity that holds a large amount of a particular cryptocurrency.

Given their sizable holdings, whales have the potential to significantly influence the price of a cryptocurrency by initiating large buy or sell orders. A 'Bearwhale,' then, refers to a whale who has a bearish outlook on the market.

This means they believe the price of a cryptocurrency will go down, and they may attempt to influence the market in this direction by selling a significant portion of their holdings. One of the most famous instances of a Bearwhale was in 2014, when an anonymous trader placed a sell order of 30,000 Bitcoin at a below-market price of $300 per Bitcoin on the Bitstamp exchange.

The massive sell order was represented graphically on the order book as a large, descending wall, giving rise to the term 'Bearwhale.' It took several hours for traders to buy all the Bitcoin offered by the Bearwhale, but the event became a legend in the Bitcoin community.

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