Inevitable trend or just a "pump and dump" game of Whales?
The cryptocurrency market has become one of the most dynamic financial playgrounds in nearly a decade. From $BTC $ETH to other meme coins like Dogecoin or Shiba,… all have gone through strong growth and decline cycles. But is that the natural law of the market or just the "drop fish, pump and dump" game of MM or Whales?
Let's analyze the issue above:
First, the Cycle is a natural law of the market. We can explain this law through two main factors: Economics and Psychology.
Economics: We cannot overlook Bitcoin Halving (the reduction of block rewards every 4 years), this is an important factor that creates growth cycles. You know BTC is like the "king" in this cryptocurrency market. It has a significant influence on other altcoins.
Psychology: Greed causes prices to soar while fear leads to strong sell-offs. This up-and-down cycle repeats many times and creates distinct market waves.
Second, the cycle is created by the "drop fish, pump and dump" tricks of Whales. The role of Whales in this market is undeniable. With the investment of a huge stockpile, the moves of Whales are always of strong interest to the community. Whales often manipulate the market using the "drop fish, pump and dump" strategy.
Drop fish:
They often buy in large quantities when prices are low and then create positive news to attract funds from retail investors like us. This price increase behavior leads to waves of FOMO (fear of missing out).
"Pump and dump":
When the price has reached the desired level, Whales start to sell off their huge stockpile to realize massive profits. Of course, they may not sell everything to create a cycle that continues to trap millions of investors at the price peak.
The cryptocurrency market is and will be a trend for many years to come. Investors should stay alert, accumulate knowledge, and maintain their mindset to manage capital and earn money from this market effectively.