OG Bitcoin Whales Unleash Sell-Off Pressure, Clouding Market Outlook
The cryptocurrency market is currently navigating a period of heightened scrutiny as prominent analysts identify a sustained and significant sell-off by "OG" Bitcoin whales. This concerning trend, driven by long-term holders cashing out, is contributing to a bearish sentiment despite the market's surprising resilience.
Over 1 Million BTC Liquidated by Veteran Investors
Charles Edwards, the astute founder of Capriole Investments, has brought to light a critical observation: Bitcoin whales, who have held their assets for over seven years, are actively offloading their holdings. His analysis, shared on platform X, revealed that these "OG" investors have sold over 1 million Bitcoin since June. A compelling chart accompanying Edwards' post highlighted the magnitude of these liquidations, distinguishing between $100 million (orange) and $500 million (red) dumps. This continuous offloading, evident since November 2024, offers a plausible explanation for Bitcoin's relative underperformance against other risk assets throughout 2025, suggesting a persistent headwind for the premier cryptocurrency.
Market Resilience Tested Amidst Bearish Forecasts
Despite the substantial selling pressure from these large, long-term holders, the broader market has demonstrated remarkable resilience. It has largely absorbed these significant sell-offs without the drastic price declines typically associated with such large-scale movements in previous cycles. However, recent events, including a considerable liquidation of leveraged crypto positions on October 10, have intensified market struggles. Bitcoin, notably, failed to regain crucial support levels at $117,000 and subsequently $112,000. Markus Thielen, CEO of 10X Research, expressed strong concerns in a Yahoo Finance interview, interpreting Bitcoin's inability to reclaim these levels as a sign that the market might be entrenched in a bear cycle. Thielen's firm, having previously foreseen Bitcoin's descent to $100,000, now projects that a "buyable bottom" is merely weeks away. He further cautioned that an "air pocket" below $93,000, compounded by the strength of the US dollar, could drive prices down towards the $70,000 range, underscoring the precarious position of Bitcoin in the current climate.
