The Bitcoin market is agitated by contradictory movements. The queen of cryptocurrencies, after having literally exploded and crossed the symbolic mark of 100,000 dollars at the beginning of December, the latter now hovers around $95,000 ($95,478.63 exactly at the time of writing). The virtual asset is torn between massive sales by historical investors and the growing appetite of financial institutions.
Bitcoin: veterans cash in, Wall Street buys
The symbolic $100,000 mark triggered a wave of profit-taking among historic Bitcoin holders. The phenomenon has taken on considerable proportions: long-term investors liquidated more than 828,000 bitcoins since Trump’s election. An unprecedented sales volume in the history of crypto. The psychological threshold of $100,000 caused a big tectonic movement in the Bitcoin market. Simon Peters, analyst at eToro, explains that “itis the right time to cash in part of their winnings » when talking about HODLers.
Faced with this surge, even massive purchases by institutional players were unable to stem the downward pressure. The considerable acquisitions of MicroStrategy (149,800 bitcoins) and the absorption by spot ETFs (84,193 bitcoins) could not counterbalance this tidal wave of sales.
Analyst Maartunn highlights this striking contrast between the withdrawal of early adopters and the appetite of new institutional players. This upheaval illustrates not only an unprecedented transfer of wealth, but also a profound change in the market: Bitcoin, once a symbol of alternative finance carried by individuals, is gradually changing in the fold of traditional financial institutions.
“ An offload of 827,783 BTC by historical investors was observed over a 30-day period, confirming the bearish trends identified in the BOLT analysis » he explains in his post on X (see below).
🚨Long-Term Holders sold 827,783 BTC in 30 days.
This is one of the bearish on-chain signals behind this BOLT statement.
A thread on more key signals behind this claim📉👇 pic.twitter.com/NgIBf8i3Vm
— Maartunn (@JA_Maartun) December 8, 2024
Institutionalization accelerates despite volatility
The year 2024 marks the entry of Bitcoin into a new era with historic approval of spot ETFs by the SEC. These regulated investment vehicles quickly captured a substantial share of the market, accumulating more than 1.104 million bitcoins, or 5% of the total supply. The arrival of Paul Atkins at the head of the SEC, appointed by Donald Trump on December 5, catalyzed this trend by sending a strong signal to the markets: the first cryptocurrency now has an ally within the American regulator, propelling its prices beyond $100,000.
However, some analysts keep a cool head. Peters is one of them and warns of the corrections inherent in Bitcoin bull markets: “ Typical retracements or corrections during bitcoin bull markets can vary between 20 and 40% “. This perspective is reinforced by the particular seasonality of the end of the year, a traditional period of portfolio rebalancing. According to him, the current decline could worsen before the end of 2024.
Bitcoin is thus at the heart of a battle between two antagonistic forces : the growing institutionalization which brings stability and legitimacy, and opposite, the tactical movements of traders and the selling pressure of the first investors. This duality of the market, which balances between structural adoption and speculative pressures, expected to maintain high volatility in the coming weeks.
- Bitcoin crossed $100,000, but is falling under selling pressure from historical investors.
- Financial institutions are supporting the market with massive purchases, but are struggling to stabilize prices.
- Analysts anticipate a marked correction by the end of the year, amplified by seasonal portfolio adjustments.
