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Jonathon Hughes , Head of Emerging Tech at MDRx , adds : “ Historically , Bitcoin whales have demonstrated an ability to impact Bitcoin prices . Their network of wallets are constantly tracked , meaning that a movement in any direction can trigger wider participation .
“ Whales are aware of this and influence the market to match their trading strategy , such as short selling , pump & dump , and stop loss hunting . Many big whales are aligned with the core principle of the technology and aid in defending the market position of the asset .”
Technological developments and Bitcoin ’ s price stability Developments like the Lightning Network , which facilitates faster and cheaper transactions , aim to improve Bitcoin ’ s functionality for trade . However ,
while this scalability may enhance its general utility , it does not directly address the core volatility that undermines its utility beyond speculation .
Introducing smart contract capabilities to Bitcoin could theoretically expand its use cases beyond trading , mirroring efforts seen on platforms like Ethereum .
However , increasing Bitcoin ’ s utility through these means would not necessarily quell its price volatility and could even introduce new avenues for speculative behaviour .
Zachary Michaelson comments : “ Advances in cryptographic security and wallet technologies can bolster investor confidence and might mitigate the chances of certain types of panic-driven sell-offs . Nevertheless , these measures primarily enhance security rather than directly moderating the wild price swings beyond certain very specific scenarios .”
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