Question #143 ·
What impact do whale transactions have on Bitcoin liquidity?
- Large whale trades can temporarily increase Bitcoin liquidity levels Right answer
- Whale transactions always cause Bitcoin price to collapse immediately
- Small retail trades impact Bitcoin liquidity more than whales
Why is this the correct answer?
This is correct because when whales move large volumes of Bitcoin, they add or remove coins from exchanges, affecting how much Bitcoin is available to buy or sell. Increased liquidity makes it easier to execute larger orders without causing big price changes. Beginners should watch whale transactions as they can signal upcoming price stability or greater trading opportunities due to higher liquidity.