Question #500 ·
How do large Bitcoin transfers from dormant wallets signal potential shifts in market supply and demand?
- They indicate that miners have found blocks and are transferring their fresh rewards to exchange hot wallets.
- They always generally mean whales are donating Bitcoin to charitable causes, which rarely directly impacts market supply.
- They show developers are often upgrading dormant wallet software, making transfers unrelated to supply or demand changes.
- They often indicate that long term holders are moving coins to sell or redistribute, affecting available supply. Right answer
Why is this the correct answer?
This is correct because large movements from inactive addresses usually indicate holders moving coins to exchanges or other wallets. When long term holders decide to sell or redistribute, it can increase liquid supply, potentially impacting price based on supply and demand shifts.