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Question #304

What impact did the $1.3 billion Bitcoin whale sale on November 20 have on market volatility?

Category: General
The $1.3 billion whale sale flooded the market, triggered stop-loss liquidations and sharply increased volatility during the price drop
The sale was too late to affect the market and had no impact on price swings
The whale sale stabilized the market by matching buy orders and reducing volatility

Why is this the correct answer?

This is correct because when a large holder dumps Bitcoin, it adds sudden selling pressure. Traders using leverage saw their positions hit stop losses as price slid, leading to cascading liquidations and higher volatility.

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