How does the price of bitcoin change when 500k worth is bought or sold?

1 answers

• Mohammed Farhan SAug 10, 2024 · a year ago
  At BYDFi, we have observed that when a large transaction of 500k worth of bitcoin is executed, it can indeed have an impact on the price. This is especially true in less liquid markets where a single large transaction can cause significant price movements. However, in highly liquid markets like bitcoin, the impact of a single transaction is usually absorbed by the market without causing a major price change. It's important to consider that the price of bitcoin is influenced by a wide range of factors, including investor sentiment, market news, and macroeconomic trends. So while a 500k transaction can create some short-term volatility, the long-term price trend is shaped by a complex interplay of these factors.
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