How are Bitcoin prices affected by big transactions on the blockchain?

Bitcoin prices can be affected by the large transactions on the blockchain. When someone sends a big transaction (that contains more than 1000 Bitcoin), there is a doubt in the trader’s mind that the coins are sent for selling. Many traders keep track of big on-chain transactions and try to predict the next Bitcoin price movement.

What happens when someone sends big transactions on Bitcoin?

When someone sends a big transaction (that contains more than 1000 Bitcoin), there is a doubt in the trader’s mind that the coins are sent for selling. Many traders keep track of big on-chain transactions and try to predict the next Bitcoin price movement. The market will fall many times after the big transactions happened.

Does bitcoin belong in futures trading?

Neither the so-called Bitcoin expert nor the average bitcoin investor seem to know. It could be argued that the use of Bitcoin in investing products like futures is proof of its attractiveness to traders.

Are bitcoin trading volumes untrustworthy?

If reported trading volumes for bitcoin, the most regulated and closely-watched crypto asset around the world, are untrustworthy, then metrics for even smaller assets should be taken with even greater grains of salt.