Why do large Bitcoin transfers by whales affect overall market stability?
Why is this the correct answer?
This is correct because whale activity can move the market due to the size of their transactions. When a whale moves large amounts of Bitcoin, other market participants may react by buying or selling in anticipation, causing sharp price fluctuations. Smaller investors’ sentiment and trading decisions often follow these large movements, amplifying volatility. Recognizing whale influence helps beginners understand why big transfers can destabilize markets and why tracking on-chain alerts is important for informed trading.
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