Question #484 ·
Why did the transfer of large Bitcoin amounts to exchanges on December 25 raise caution, even though prices remained range-bound?
- It indicates whales were distributing BTC donations to charities
- Whale deposits often signal potential sell pressure, prompting caution despite stable prices Right answer
- It means whales were hiding coins to prevent price manipulation
Why is this the correct answer?
This is correct because when large holders move coins to exchanges, it often precedes selling. Traders see this as a warning sign that supply might surge, which can lead to price drops, so they become cautious.