A whale refers to an individual or entity that holds a large amount of a specific cryptocurrency or financial asset. Due to their significant holdings, whales can influence market prices with a single large trade, causing sudden spikes or drops—often referred to as “whale moves.” Their activity is closely monitored by traders through blockchain explorers and “whale alert” tools. While whales can add liquidity, they can also create volatility and market manipulation concerns. In traditional finance, large institutional investors can play a similar role. Understanding whale behaviour helps traders anticipate market shifts and manage their risk accordingly.
Example:
A large institutional investor places trades substantial enough to influence price movement.
