Question #208 ·
Why does large-scale Bitcoin selling by whales put downward pressure on prices?
- Whale selling diminishes Bitcoin network security and forces nodes to upgrade software
- Whale selling increases supply rapidly, outpacing demand and driving market prices lower Right answer
- Whale selling creates artificial scarcity that inflates Bitcoin values beyond sustainable levels
- Whale selling stabilizes Bitcoin prices by balancing mining rewards and transaction costs
Why is this the correct answer?
This is correct because when large holders sell significant Bitcoin amounts at once, the market supply suddenly jumps. If there are not enough buyers to absorb that supply, prices drop. Beginners should know that price is determined by supply and demand, so a flood of sell orders from whales usually pushes prices down.