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Question #284

How can on-chain data such as large whale movements signal potential changes in Bitcoin markets?

Category: General
They track monetary policy changes to correlate bank interest rate decisions with Bitcoin adoption
They indicate accumulation or distribution events when big holders move coins signaling price shifts
They measure developer activity on GitHub to infer network health and predict protocol upgrades

Why is this the correct answer?

This is correct because on-chain data on large transfers often represents whales buying more coins (accumulation) or selling (distribution). Tracking these movements helps beginners see early signs of potential market rallies or sell-offs before they appear in price charts.

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