Bitcoin transfer (BTC) long-term holders, also known as “OGs,” with “weak” hands, will result in more severe future withdrawals, according to gold investor and economist Peter Schiff.
Bitcoin “Finally Lives Its IPO Moment,” Schiff said on Saturday, adding that there is now enough liquidity in the Bitcoin market to long-term holders to cash out.
“Such an amount of Bitcoin moving from strong to weak hands not only increases float, but also means that future sales will be greater,” Schiff added.
Whales and other long-term Bitcoin holders dropped over 400,000 BTC in October, contributing to significant selling pressure, which pushed up the price of BTC will collapse below $85,000.
The current crypto downturn has left analysts and investors divided on the direction of the market and whether the uptrend will resume once liquidity conditions improve or if we are. facing the next bear market in cryptocurrencies.
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Top-tier and long-term holders are cashing in, but can individuals and institutions absorb the selling pressure?
Owen Gunden, one of the first long-term Bitcoin holders, cashed out, sell your entire reserve of 11,000 BTCvalued at approximately $1.3 billion, in October and November.
Robert Kiyosaki, author of “Rich Dad, Poor Dad” and investor, announcement Friday that he sold all his BTCvalued at approximately $2.25 million.
Kiyosaki said he bought BTC when it was around $6,000 per coin and sold it at the $90,000 level. He added that he would channel the profits into income-generating businesses.
“I am still very bullish on Bitcoin and will start acquiring more with my positive cash flow,” Kiyosaki said.
Strong selling pressure from long-term holders cashing out and leveraged liquidations in crypto derivatives markets are the main factors. lead the short-term withdrawalsaid analysts at crypto exchange Bitfinex.
Bitcoin’s fundamentals remain strong and attractive to institutional investors, who will continue to adopt BTC and drive demand, according to Bitfinex analysts.
However, retail investors will likely sell their BTC at the first sign of trouble, Vineet Budki, CEO of venture capital firm Sigma Capital, told Cointelegraph, adding that this lack of conviction among retail investors generate a 70% price reduction during the next bear market.
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