Whale Activity

Definition ∞ Whale activity denotes the trading actions of large holders of digital assets, often referred to as “whales.” These entities possess substantial amounts of cryptocurrency, and their transactions can significantly influence market prices due to their volume. Monitoring whale activity provides insights into potential market shifts and large-scale directional movements.
Context ∞ News coverage of digital assets frequently scrutinizes whale activity as a potential indicator of market sentiment and impending price action. Reports often track large transfers, accumulation, or liquidation patterns by these significant holders. Understanding the implications of whale activity is crucial for interpreting market signals and assessing the potential impact of concentrated capital on asset valuations.