What happened?
Bitcoin is experiencing a shift in the market as large-scale sales by early investors have started. One Bitcoin whale sold 1,176 BTC which amounts to $136 million on Hyperliquid. This comes after the same entity sold nearly $4 billion worth of Bitcoin for ETH just weeks ago. In addition to these sales, more dormant wallets with significant holdings are becoming active, hinting at a potential liquidation risk.
Who does this affect?
This trading activity significantly affects Bitcoin holders, especially long-term ones who may be feeling the pressure of reduced holdings due to these large-scale sales. It also impacts institutions, as Bitcoin ETFs are providing support by absorbing coins at scale despite the renewed selling. The movements and decisions of these early investors are closely watched as they can shift market sentiment and cause liquidity shocks.
Why does this matter?
This could potentially have a considerable impact on the Bitcoin market. There is a balancing act between the whales offloading their Bitcoins and the ETF inflows absorbing them. For traders and investors, the question lies in whether the demand from ETF inflows can keep pace with the sales by Bitcoin whales. This selling pressure combined with potential liquidation risks could greatly influence Bitcoin’s next price move.