The transfer of Bitcoin (BTC) from long-term holders, also referred to as “OGs,” into “weak” hands will result in future price losses, in response to gold investor and economist Peter Schiff.
Bitcoin is “finally having its IPO moment,” Schiff said on Saturday, adding that there’s now enough liquidity within the Bitcoin marketplace for long-term holders to money out.
“So much Bitcoin moving from strong to weak hands not only increases the float, but additionally means future sell-offs shall be larger,” Schiff added.
Source: Peter Schiff
Whales and other long-term Bitcoin holders dumped over 400,000 BTC in October, creating significant selling pressure that caused the BTC price to plummet below $85,000.
Due to the continuing crypto downturn, analysts and investors are divided over the direction of the market and whether the uptrend will resume once liquidity conditions improve or whether we’re in for the following crypto bear market.
High-profile, long-term holders are cashing out, but can retail and institutions absorb the selling pressure?
Owen Gunden, one in every of the primary long-term Bitcoin holders, cashed out his entire stash of 11,000 BTC, value around $1.3 billion, in October and November.
Robert Kiyosaki, the writer of “Rich Dad, Poor Dad” and investor, announced on Friday that he had sold all of his BTC, value about $2.25 million.
Kiyosaki said he bought BTC for about $6,000 per coin and sold it for $90,000. He added that he would channel the profits into income-generating businesses.
“I’m still very bullish on Bitcoin and can start acquiring more with my positive money flow,” Kiyosaki said.
According to analysts at crypto exchange Bitfinex, strong selling pressure from long-term holders cashing out and leveraged liquidation in crypto derivatives markets are the predominant aspects driving the short-term decline.
Bitcoin's fundamentals remain strong and attractive to institutional investors, who will proceed to make use of BTC and drive demand, in response to analysts at Bitfinex.
However, retail investors are prone to sell their BTC at the primary sign of trouble, Vineet Budki, CEO of enterprise firm Sigma Capital, told Cointelegraph, adding that this lack of conviction amongst retail investors will result in a 70% price drop in the following bear market.
