Definition ∞ Trader impact refers to the influence that individual or collective trading activities have on the price and liquidity of a specific asset or the broader market. Large trades by significant market participants, often termed ‘whales,’ can cause substantial price movements due to their size. This concept examines how trading volume and order flow affect market dynamics.
Context ∞ The impact of large traders on cryptocurrency markets is a recurring theme in market analysis, with discussions often focusing on the potential for manipulation and the price discovery process. Observers monitor whale movements and large order book activities to infer potential market direction. Understanding trader impact is essential for comprehending short-term price fluctuations and the dynamics of market participants.
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