Bitcoin (BTC) has been in a downtrend since its peak in March, which has caused disappointment among investors. However, 10x Research founder Markus Thielen helps us understand this situation better. According to him, whale sales and token unlocks are among the main reasons for the declines.
Reasons for BTC Correction$BTC
Thielen noted that the BTC declines since March have largely been due to whale sell-offs, as well as large token unlocks. These sell-offs have been putting significant pressure on the market, offsetting the positive effects from stablecoin inflows and spot Bitcoin ETFs. However, strong inflows from leveraged futures are preventing prices from falling further. Still, this pressure is making it difficult for Bitcoin to recover.
Thielen states that significant movements are expected in Bitcoin in the next 6 to 12 months. In particular, the FED's continued interest rate cuts due to low inflation will be a critical factor. In addition, strong profits of corporate companies in the US may also have an impact on Bitcoin. The increase in US economic growth may increase interest in Bitcoin. In this context, Thielen states that these developments may positively affect the price of Bitcoin and emphasizes that this situation may be a promising signal for investors.
The Impact of BTC Whale Sales
Noting that whale sales have been putting pressure on the Bitcoin price since March, Thielen says that the price has fallen even more as large investors have sold their BTC assets. These sales, combined with the closing of positions by early token holders, have created a massive selling wave. Although strong inflows from stablecoins and futures are trying to balance these sales, the impact of whale sales is still felt. In addition, token unlocks are also putting pressure on cryptocurrency prices. As early investors release their tokens, supply increases, causing prices to fall. Continuing token openings are increasing pressure on BTC. However, Thielen thinks that the general outlook for Bitcoin is positive. Bitcoin is supported by strong inflows in the market, which promises hope for future price movements.
Will Bitcoin Price Recover?
BTC has been under pressure since March due to whale sales and token unlocks. However, the Fed’s rate cuts and US economic growth could boost Bitcoin’s upside potential. Thielen predicts that Bitcoin could see a significant recovery in the next 6 to 12 months.
