According to analyst Jordi Visser, cryptocurrency whales and long-term holders are pouring out money, putting constant selling pressure on the markets and keeping cryptocurrency prices suppressed, much like the market dynamics following the dot-com stock market crash within the 2000s.
Visser said the present price motion within the crypto market is paying homage to the period after the dot-com stock market bubble in 2000, which sent stocks plummeting as much as 80%, followed by a 16-year consolidation before regaining their previous highs.
This meant that enterprise capitalists who invested in technology in the course of the crash were forced to carry back their investments while they fell by the wayside as a result of mandatory lock-up periods, then desperately sold them within the markets as soon as they were able, Visser said. He added:
“Many stocks traded below their IPO prices. We have the same situation right away. VC and insider investors, desperate for liquidity or redemption, sold on every rally. This happened to me with Solana, Ethereum, every altcoin and Bitcoin.”It took the US stock market about 16 years to succeed in its previous all-time high and was suppressed by large investors selling off the market. Source: Jordi Visser
Visser clarified that it might not take 16 years for crypto prices to recuperate, but somewhat used the dot-com aftermath of the 2000s for instance sell-side pressure dynamics, saying that crypto is nearing the tip of this consolidation phase with a maximum of a 12 months left.
Has Bitcoin Bottomed Around $100,000?
According to some analysts, BTC price is showing signs of bottoming around $100,000, but others fear a possible decline to $92,000 if selling pressure continues to extend.
Whales and long-term holders typically earn at all-time highs, and selling whales in itself shouldn’t be an issue, said Julio Moreno, an analyst at CryptoQuant.
Sell-side pressure from whales and long-term holders only depresses asset prices when there isn’t any latest demand to soak up the BTC supply dumped within the markets.
“Since October, sales of long-term holders have increased; that is nothing latest, but demand is shrinking and it shouldn’t be possible to soak up the provision of long-term holders at the next price,” Moreno said.
