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Are you a newbie to the cryptocurrency markets? Are you confused about the role of animals in the market when you hear about bear, bull, or whale? If you are an enthusiastic investor and just don’t want to invest in the cryptocurrency by your friend’s advice, then you must be aware of these animals’ roles in crypto space. The better knowledge can help you in technical analysis and also aid in formulating the investment strategies. In this article some of the questions like- What is crypto bull? What is crypto bear? What is crypto whale? Will be responded along with their effects in the crypto markets. This article aims to brief the difference between crypto bull, crypto bear and crypto whale.
Difference Between Crypto Bull, Crypto Bear and Crypto Whale
What is Crypto Bull? | Effect of Crypto Bull In Crypto Market
What is crypto bull? To understand and remember about crypto bulls, you can start imagining the features of a real bull. If we think of a bull, he is fearless and powerful with his horns pointing upwards in the sky. In the cryptocurrency market, the situations in the market point towards the powerful and upward trend of the crypto market. Simply, the bull market in crypto space is characterized by investor confidence in the cryptocurrency as the price tends to go up.
Just try to go back in history, and recall the situation of the crypto market in December,2017. The prices of Bitcoin almost touched $20,000, the skyrocketing of price built up the confidence among investors and within 24 hours, the crypto market was flushed with a massive amount of fresh investment.
Effect of Crypto Bull on Crypto Market
Strong market conditions are represented by the bull market. But, what effect of crypto bull on the crypto market can be noticed? Or how is it useful for investors? Bull market basically attracts investments, which results in a further rise in the value of the price of Bitcoin or any other cryptocurrency. The attitude and the type of investors (new or advanced or institutional) invest according to their risk-taking capability and the funds they can afford to lose(if in case). Some of the investors tend to invest in the bull run by expecting to sell the cryptocurrencies when the trend is at top. While some of the investors, which already had Bitcoins with them tend to sell as it helps in gaining them profits (when the selling price is more than buying price). Bull market experience both selling and buying of cryptocurrencies. Thus, stereotyping the bull market with the purchasing attitude of investors might not be right. And also, it does not always mean that the bull market always leads to profit because the volatile nature of Bitcoin might reverse the trend overnight and you never know, you might end up losing. Thus, It is recommendable to study the market trends before doing any investment.
What Is Bear? | Effect of Crypto Bear on Crypto Market
What is crypto bear? To understand and remember about crypto bears, you can start imagining the features of a real bear(that too most lazy one!). If we think of a bear, he is lazy and sleepy with his horns. Just a second, do they have horns? Nope! No horns. In the cryptocurrency market, the situations in the market point towards the shrouded and downward trend of the crypto market. Simply, the bear market in crypto space is characterized by investors losing confidence in the cryptocurrency as the price tends to fall down.
Just try to go back in recent history, and recall the situation of the crypto market in March,2020. The prices of Bitcoin almost crashed from $8000 to $3000, the skydiving of prices shook up the confidence of investors and within 24 hours, billions of dollars swiped away from the crypto market.
Effect of Crypto Bear on Crypto Market
Weak market conditions are represented by the bear market. But, what effect crypto bear on the crypto market can be noticed? Or how is it useful for investors? Bear markets basically sway away from the investments, which results in a further drop in the value of the price of Bitcoin or any other cryptocurrency. The attitude and the type of investors (new or advanced or institutional) invest according to their risk-taking capability and the funds they can afford to lose(if in case). Some of the investors tend to invest even in the bear run by expecting to sell the cryptocurrencies when the trend reverses. While some of the investors (big), which already had Bitcoins with them tend to sell to avoid further loss (even when the selling price is less than buying price). Bear market experience both selling and buying of cryptocurrencies. Thus, stereotyping the bear market with the selling attitude of investors might not be right. And also, it does not always mean that the bear market always leads to loss because the volatile nature of Bitcoin might reverse the trend and you never know, you might end up gaining. Thus, It is recommendable to study the market trends before doing any investment.
What is Crypto Whale? | Effect of Crypto Whales on Crypto Market
Till now you might be clear with- What is crypto bull? And What is the crypto bear? They both are representative of market trends. But at the starting of this article, we stated that you will get to know about whales too.
Whales do not represent any market trend but they are associated with trend makers. Generally, in crypto markets, whale refers to individuals or groups who hold a large amount of cryptocurrencies. You can imagine the marine mammal, when she splashes in the water, a wave has been created. Similarly, when the whales in the crypto market sell or buy cryptocurrency, a wave is being created which can even reverse the trend. Whales could be anonymous traders, crypto exchanges, hedge funders, and people who are identified only by their public addresses.
Effect of Crypto Whales on Crypto market
Let us try to recall a situation from March 2020. Crypto market crashed within 24 hours. Crypto whale Alert (a website that tracks the activities of whales and also the effects they have on crypto markets) detected that two simultaneous transactions worth almost $22 million took place between the crypto wallets of one of the most reputed crypto exchanges, Binance. Later, it came into the picture that crypto whales were trying to push the prices of BTC up to $6000 to purchase the dip before the next bull market came into the picture.
Bitcoin is based on a decentralized model of blockchain technology but indirectly affected by the whales of crypto space. So, the individuals owning large amounts of coins can be problematic to the crypto markets. As the markets are unregulated, whales have the power to move the market in a particular direction. Thus, it is essential to look at the moves of big names in the markets, and the job is being efficiently done by Bitcoin whale alert. Whale alert helps in carefully analyzing the abnormal changes in prices and volatility caused by the activities of crypto whales.
Final Thoughts
Till now, you might be cleared with the basic difference between crypto bull, crypto bear and crypto whale. If you are thinking about the better opportunity for investment, then you can start with walking on a usual path. Buy the dips in a bull market and sell the rips in a bear market. It is like a general thumb rule followed by most of the investors of the crypto community.
