Bitcoin has recently experienced a round of violent fluctuations, directly breaking through the key support level of 57,000. Recalling that its high point on June 7 was 72,000, it fell back by 15,000 points in just one month. Along the way, the bulls have been under tremendous pressure, and the bull market journey seems particularly difficult.
The root cause of this decline is obvious. A group of senior investors with huge amounts of BTC chose to sell them at the peak of the bull market. The German government's actions were particularly eye-catching. It sold thousands of BTC on a large scale for several consecutive days. According to Lookonchain data, 3,000 BTC were transferred today, with a value of up to $174 million, and some of them flowed to mainstream trading platforms. When the large amount of BTC (about 50,000) held by the German government can be sold has become a major suspense in the market.
In addition, the number of Bitcoins held by the US government, China, North Korea and other countries is also considerable. Their potential selling behavior is like a sword of Damocles hanging over the market, which makes investors hesitate and difficult to boldly increase their positions. What is more worrying is that old creditors such as Mt.Gox also want to take this opportunity to repay their debts. The more than 140,000 BTC in their hands may become a heavy hammer to further suppress the market.
However, despite the numerous difficulties, this bull market has not completely lost hope. The prosperity of the ETF market has injected new vitality into the market, especially the huge net inflow of funds into the US Bitcoin spot ETF (which has reached US$14.6 billion) and the active trading in the Hong Kong market, which all indicate that a large amount of funds are seeking to make profits in the crypto market rather than simply being harvested. The influx of these funds should theoretically drive the market out of a bull market.
But the reality is that Bitcoin is struggling due to the huge selling pressure mentioned above, and it is difficult to shoulder the responsibility of leading the bull market alone. In this context, the market began to look for new leaders, and mainstream altcoins such as SOL gradually entered the investors' field of vision due to their relatively light holding pressure and independent market trends. In particular, after the application of SOL spot ETF was put forward, it triggered a warm response from the market and active involvement of funds, showing its potential as a new leader.
Judging from the recent market trends, mainstream altcoins such as SOL have become more resistant to falling when BTC falls, and their rebound strength is also stronger. This shows that funds have begun to shift to these more resilient assets, and it is possible that a new bull market will be formed in the future. Therefore, we have reason to believe that with the further adjustment of the market and the reconfiguration of funds, mainstream altcoins such as SOL are expected to become new bull market flag bearers and lead the market into a new stage of development. Let us look forward to the arrival of this transformation together.