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Question #317

How have long‐term holders’ sales of 400,000 BTC in November affected recent Bitcoin price movements?

Category: General
Significant long-term holder sales increased downward pressure, triggering price declines and amplifying market volatility
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.

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