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Bitcoin’s $100K path will not be easy and with ups and downs, many predict hitting a large figure will take a path of dips. Bitcoin’s recent dip from nearly $100,000 to around $91,000 is stirring up this debate among traders and analysts. But according to Bitcoin custody firm Theya’s head of growth, Joe Consorti, this correction is just normal. He believes it’s a natural part of Bitcoin’s price discovery process.
Having said that, Bitcoin approaches new all-time highs, as it did with the $100K mark, and psychological resistance plays a significant role in causing price fluctuations.
Why the Correction is Expected
He explained that these pullbacks are typical during Bitcoin’s early bull phases. Historically, it means that BTC will face a series of corrections when it crosses key milestones. This happened during previous runs, notably in 2021, when Bitcoin’s rise to $60,000 was followed by sharp retracements.
The most recent pullback, about 8.7% from its peak, falls well within this pattern. Long-term holders (LTHs)—those who have owned Bitcoin for at least 155 days—are usually the ones taking profits during these surges, adding to the market’s volatility.
Over the past few weeks, LTHs have sold off more than 400,000 BTC, which contributed to the market’s recent dip. But there’s another force at play: institutional buyers. Bitcoin ETFs and corporations, such as MicroStrategy, have scooped up hundreds of thousands of BTC, helping to offset the selling pressure from LTHs.
A Bullish Foundation
Moreover, Bitcoin’s price is highly sensitive to global liquidity trends, particularly the M2 money supply. As global M2 contracts, Bitcoin tends to follow suit, which could lead to further corrections of up to 25%, as observed by analysts.
Despite this, Bitcoin’s resilience against liquidity tightening, backed by strong institutional buying, indicates that it may maintain its upward momentum, with a potential for significant growth once the LTHs finish profit-taking.
The Road Ahead
As Bitcoin nears the coveted $100K mark, Consorti urges investors to look beyond short-term price movements. The psychological significance of Bitcoin breaking $100K is profound, shifting it from a speculative asset to a widely recognized store of value. While the road to $100K may involve bumps and corrections, Bitcoin’s long-term potential remains strong, particularly with growing institutional support. So, while corrections may come, Bitcoin’s year-end trajectory points upward.
What will be your strategy to sail this correction phase?