Question #317 ·
How have long‐term holders’ sales of 400,000 BTC in November affected recent Bitcoin price movements?
- Significant long-term holder sales increased downward pressure, triggering price declines and amplifying market volatility Right answer
- They caused miners to reduce production, significantly lowering hash rate and raising block intervals
- They boosted network transaction fees substantially, causing congestion and slowing block confirmation times
Why is this the correct answer?
This is correct because when long-term holders sell large volumes—like 400,000 BTC—they add substantial supply to the market. Buyers may not absorb this supply immediately, driving price down. The sudden drop can trigger stop-loss orders and panic selling by shorter-term traders, further amplifying volatility. Beginners should understand that big sell-offs by holders with large positions can have outsized effects on price movements.