The lack of confidence from the “weak” will cause new Bitcoin holders to sell at the first sign of trouble, making the market decline worse.
According to gold investor and economist Peter Schiff, moving Bitcoin from long-time holders, also known as “OGs,” to “weak” ones will make future withdrawals more severe.
Schiff said on Saturday that Bitcoin “finally has its IPO moment,” adding that there is now enough liquidation in the Bitcoin market for long-term holders to sell.
“Such a transfer of Bitcoin from the hands of the strong to the hands of the weak not only increases the amount of Bitcoin in circulation, but also means that future sell-offs will be larger,” Schiff added.
Whales and other long-time Bitcoin holders sold more than 400,000 BTC in October, creating significant selling pressure that sent BTC price plunging below $85,000 – updated according to BingX exchange rates.
The ongoing cryptocurrency downturn has left analysts and investors Chia on the direction of the market and whether the bullish trend will continue as liquidation conditions improve or we are facing the next crypto bear market.
Long-time and established holders are selling, but can retailers and institutions withstand the selling pressure?
Owen Gunden, one of the first long-time Bitcoin holders, sold all of his Bitcoin worth about $1.3 billion in October and November.
Robert Kiyosaki, author of the book “Rich Dad, Poor Dad” and an investor, announced on Friday that he has sold all of his BTC , worth about $2.25 million.
Kiyosaki said he bought BTC when it was around $6,000 a coin and sold it at $90,000. He added that he would funnel the profits into income-generating businesses.
“I am still very bullish and believe in Bitcoin and will start buying more with my positive cash flow,” Kiyosaki said.
Analysts at cryptocurrency exchange Bitfinex said heavy selling pressure from long-term holders withdrawing funds and leverage liquidation in the crypto Derivative market were the main factors driving the short-term decline.
According to Bitfinex analysts, Bitcoin's fundamentals remain strong and attractive to institutional investors, who will continue to adopt BTC and drive demand.
However, Vineet Budki, CEO of venture capital firm Sigma Capital, told Cointelegraph that retail investors will likely sell BTC at the first sign of trouble, adding that this lack of confidence among retail investors will cause the price to drop by 70% in the next bear market.
Source: Cointelegraph
