Question #274 ·
Why are large whale transactions, for example the sale of 815,000 BTC in 30 days, significant for Bitcoin market dynamics?
- They automatically trigger network forks and consensus changes unrelated to market supply or demand.
- They are recorded on the blockchain in private wallets and never influence public markets.
- They solely determine Bitcoin block times and have no effect on market price fluctuations.
- They can create sudden supply shocks that move prices sharply in either extreme direction. Right answer
Why is this the correct answer?
This is correct because when whales move large amounts of Bitcoin, they can flood exchanges with supply or create sudden demand, causing rapid price changes. Beginners should note that big transactions by major holders often trigger volatility and can lead to major price swings.