Again, he will sell as much as he can to buyers with a bid in at that price. But the problem is, there aren’t enough buyers at that price. So he will need to keep lowering the price until he finds enough buyers to take all his coins. This will cause a cascade effect and push the price down. And as the price drops, more and more holders will be forced to sell as their margin calls and stop losses get triggered. This will create a snowball effect and cause the price to drop even further. It’s a vicious cycle. This is what happened yesterday. A large whale started to sell off his coins and caused the entire market to drop. This is why we see this sort of thing happen so often.
Yesterday was a tough day in the crypto markets, but it’s important to remember that these things happen and they can be opportunities for those who are prepared for them. When a whale sells off a large amount of their holdings, it can cause the entire market to drop. This happened yesterday, with around 1 billion dollars in liquidation across the market. The cause of this is liquidity—if a large holder sells off their holdings, and there aren’t enough buyers to take them all, it will cause the price to drop. This creates a ripple effect, with holders being forced to sell as their margin calls and stop losses get triggered.
It’s also important to remember that these market drops can also be opportunities for those who are prepared. The current crypto market cap is around 1 trillion dollars, so yesterday’s liquidation was only 0.1% of the entire market. This means the market can rebound quickly, and if you’re prepared to buy the dip, you can make some great profits. It also pays to be aware of the liquidity of the market and the potential for whales to sell off their holdings. Knowing these things can help you to be better prepared for when these events happen, and to take advantage of them.