A bear whale refers to a large investor or entity that holds significant amounts of a cryptocurrency and actively sells their holdings to influence the market negatively. This results in a decrease in price, often creating panic among smaller investors. Bear whales usually have the power to dramatically impact trading volumes and price levels due to the sheer size of their trades.

When they decide to sell a large portion of their assets, it can trigger a downward trend, leading to further selling by others who fear losses. These actions are often part of a broader strategy, possibly to accumulate more assets at a lower price after driving down the market.

The presence of a bear whale can create a challenging environment for retail investors, who may react to price drops without fully understanding the motivations behind such large transactions. Overall, bear whales play a significant role in market dynamics, and their actions can lead to increased volatility and uncertainty among traders.