Bear Whale
What is a Bear Whale?
A bear whale is a term used to describe an investor or trader who holds a large amount of a particular cryptocurrency and uses that holding to drive down the price of that cryptocurrency. Essentially, a bear whale is a market manipulator who uses their large holdings to create downward pressure on the price of a cryptocurrency or other asset. This can be accomplished by selling large amounts of the cryptocurrency at once, which can trigger a sell-off by other investors and lead to a drop in price.
The term "bear whale" is a combination of two terms: "bear," which is a term used to describe a market trend in which prices are falling, and "whale," which is a term used to describe an investor who holds a large amount of a particular cryptocurrency. Therefore, a bear whale is a large investor who uses their holdings to drive down the price of a cryptocurrency during a bear market. It is important to note that this type of market manipulation is illegal and can have serious consequences for those who engage in it.
Popular Examples of a Bear Whale
Whales can place and remove sell walls on a CEX’s order book continuously, manipulating other traders to sell off their assets early because they see the sell wall.
Whales use sell walls to bluff other traders into putting their sell orders below the sell wall, causing price to move down and hence; they make profits since the prices heads towards their intended direction.
Bitcoin traders slayed the infamous bear whale who dumped 30,000 BTC in a single trade in Year 2015.
Simplified Example
A "bear whale" in investing can be compared to a whale that is swimming upstream against the current. Just as a whale swimming upstream against the current might represent a force of resistance, a bear whale in investing represents a large investor who is betting against the market and selling their assets, potentially pushing prices downward. Just as a whale swimming upstream against the current might require significant strength and persistence, a bear whale in investing might require significant resources and determination to successfully bet against the market. Just as a whale swimming upstream against the current might influence the behavior of other fish, a bear whale in investing might influence the behavior of other investors, potentially causing a market sell-off. In short, a bear whale in investing is a large investor who is betting against the market and selling their assets, potentially pushing prices downward and influencing the behavior of other investors.