Fish in the Crypto Sea: Small-scale Participants

Fish are those with small crypto investments.

Who are fish?

A fish, or minnow, is someone who owns a small amount of cryptocurrency, often at the mercy of the whales that move the market up and down. Fish action is unlikely to significantly affect market share - but that could change as fish share of the market increases.

When it increases, minnows may become dolphin and eventually reach whale status. Changing to dolphin or whale status means that these players can have a significant impact on cryptocurrency prices. For example, bitcoin dolphins can be defined as a segment of players who place orders of 1,000 BTC or more on cryptocurrency exchanges.

Bitcoin whales are typically hedge funds or huge institutional giants that place massive orders for amounts larger than those placed by dolphins. Tesla and MicroStrategy are prime examples of BTC whales.

Orders placed by whales are usually handled through special agreements on exchanges and are usually not visible to regular retail traders. The cryptocurrency movements of BTC whales can significantly impact the BTC market. BTC whales lead to increased volatility, prohibitive movements and/or reduced liquidity in the BTC market. It is worth noting that BTC whales set the tone for “minnows” to speculate on the future direction of cryptocurrency prices. This can cause a dangerous cycle in which the price of cryptocurrencies becomes unconnected to the fundamental drivers of cryptocurrencies.

Related terms