Will Bitcoin’s Price Drop?
The recent sell-off by long-term Bitcoin holders, who traditionally were considered experienced and strategic investors, is raising concerns reminiscent of past market downturns.
However, recent data analysis suggests a shift in strategy as long-term holders have been initiating a sell-off, notably transferring ~$625M in profit to exchanges on Jan. 22, resembling previous activity on Jan. 17.
The situation escalated on Jan. 23 when long-term holders incurred a substantial loss of about $430M by transferring coins to exchanges as Bitcoin fell below $39,000.
This pattern is eerily similar to the pre-Luna collapse capitulation observed in May 2022 when a comparable amount was sent to exchanges at a loss, preceding a more severe loss of over $600M just a week later.
This precedes a shocking drop in Bitcoin's value below $20,000. These repeated losses raise concerns about potential capitulation among Bitcoin's long-term stakeholders…