How do large investors impact the Bitcoin market?

Large investors, often referred to as “whales,” can significantly impact the Bitcoin market. Their substantial buy or sell orders can lead to dramatic price swings, creating volatility.

Positive impacts include increased market liquidity and potential stabilization as these investors can absorb large quantities of Bitcoin. However, their actions can also lead to market manipulation, where coordinated buying or selling influences market prices and affects smaller investors. Overall, large investors play a pivotal role in shaping market dynamics.