Question #284 ·
How can on-chain data such as large whale movements signal potential changes in Bitcoin markets?
- 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 Right answer
- 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.