Definition ∞ Whale trading refers to the large-scale buying or selling of digital assets by individuals or entities holding substantial amounts of cryptocurrency. These significant transactions can exert considerable influence on market prices due to their sheer volume. Such traders, often called “whales,” possess enough capital to move markets, creating noticeable price fluctuations. Their actions are closely monitored by other market participants.
Context ∞ Whale trading activity is a constant subject of observation and speculation in digital asset markets, with analysts frequently tracking large transactions for potential market impact. News reports often highlight significant whale movements as indicators of sentiment shifts or impending price volatility. Understanding the behavior of these large holders provides insight into potential market direction and overall liquidity dynamics.