Thanks for the comment @fitinfun

You put forth some very pertinent points. In this case, it isn't real liquidity as it is done with the intent to steer markets into a particular direction. I know intent alone is not enough so stick with me.

When the someone places a sell order, it is considered a true transaction when they are fulfilling someone else's demand to buy. In this case, nobody is really benefiting. Majority of wash trades are done at a single price. I place a sell for 40 BTC at $4100 and I also place a buy at $4100. It goes from me to me but because my sell went in first, it created a huge asymmetry of demand and supply. This caused retailers to jump in with shorts.

A common false perception these retail traders have is not the understanding that volume is two side (buyer and seller).

Your statement of whales in every market is true. Just that with crypto being hardly a fraction of the Forex market, you need much less capital to influence the market.

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