When you add the phrases “whale,” “bear,” and “bull” to the word “Cryptocurrency”, you’re undoubtedly left wondering what these animals have to do with digital currencies like Bitcoin. The crypto world is a separate entity from the rest of the planet. It’s not the same as the stock market, but the two realms share a lot of similarities. The usage of animalistic analogies, such as “bull,” “bear,” and even “whale,” is one of the strange things those crypto traders and investors have in common. What do these phrases imply, and do they have a place in the crypto zoo?
Cryptocurrency Whale:
A cryptocurrency whale is a word used to describe persons or entities who own enormous quantities of digital currencies. Bitcoin whales, like the sea creatures with whom they share a name, are both feared and admired in equal measure as they travel throughout the cryptocurrency world, making waves at every turn. Many Bitcoin whales are anonymous traders, exchanges, and hedge funds whose public addresses are the only way to identify them. One of the most well-known whales is Satoshi Nakamoto, the enigmatic creator(s) of Bitcoin, who is estimated to hold at least one million Bitcoin. Tyler and Cameron Winklevoss, the Winklevoss twins, were formerly believed to hold 1% of all Bitcoins in circulation. Because of their digital riches and the fact that the bitcoin market is still mostly unregulated, whales may be able to sway the market in their favor. As a result, traders frequently pay close attention to whales, watching how, when, and where they trade.
Cryptocurrency Bear:
When we talk about a cryptocurrency bear market, we’re talking about a market that’s characterized by caution and pessimism, with traders preferring to sell rather than purchase. You may expect lower highs and lower lows during a bear market. The fall of Bitcoin at the start of 2018 is an excellent example of this. It’s crucial to distinguish between a bear market and a price correction. A bear market is characterized by notable negative swings over a long period. When the price of an inflated currency or commodity corrects itself, it is called a price correction.
Cryptocurrency Bull:
A Cryptocurrency bull market in cryptocurrency is the polar opposite of a bear market. So, if the market is trending upward, we’re in the midst of a bull market. Bull markets are characterized by optimism and investor confidence in this sense. A prominent example of a cryptocurrency bull market is Bitcoin reaching US$ 20,000 per coin in December 2017.
