How does tracking large Bitcoin purchases by companies like MicroStrategy illustrate whale movement effects on market dynamics?
Why is this the correct answer?
This is correct because when big investors such as companies buy substantial amounts of Bitcoin, the reduced supply on exchanges can push prices upward. Observing these purchases helps beginners recognize that whales influence market liquidity. As demand from these large holders grows, available coins for retail traders decline, creating upward pressure on price. Learning to spot whale activity helps newcomers understand one of the key drivers behind sudden market movements.
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