Long-term Bitcoin (BTC) holders sold over 728,000 BTC in the last 30 days. This is a huge amount, equivalent to almost $67 billion at current prices. According to the analytics platform CryptoQuant, this sell-off was the largest since April and sharply contrasts with the October actions of 'whales' who were then massively buying assets.
What caused such a turnaround? 🤔
First, Bitcoin recently approached its historical maximum, falling just a few dollars short of the $100,000 mark. It is logical that many investors decided to lock in profits amid such a rally 🚀.
Secondly, political events have influenced the market. Donald Trump, who supported the blockchain industry during his election campaign, sparked optimism among investors. However, concerns about potential tightening of regulation have emerged, which may have prompted long-term holders to sell assets.
Another factor has been the decrease in Bitcoin's dominance in the market. According to TradingView data, BTC's share of the total crypto market capitalization has fallen to 51%, although it recently exceeded 60%. This indicates a redistribution of capital towards altcoins, which are actively growing amid the weakening momentum of Bitcoin.
So, how does this affect the market?
The mass sale of BTC creates pressure on the price, which can lead to increased volatility 📉📈. On one hand, this opens new opportunities for traders, on the other hand – it increases risks. Additionally, the sell-off weakens the overall bullish momentum, and a market correction may begin. However, a positive aspect of this situation is the strengthening positions of altcoins, which are gaining more attention from investors.
Tips for traders
1. Be careful with shoulders 💡. Market volatility may increase, so do not take excessive risks.
2. Keep an eye on the news 📢. Political and economic events can significantly affect market sentiment.
3. Consider altcoins 🌟. The decrease in BTC dominance opens up opportunities to earn on other cryptocurrencies.
4. Plan trades in advance 📊. Determine entry and exit points to avoid emotional decisions.
5. Don't panic 😌. Even if the market starts a correction, Bitcoin remains a strong asset with long-term potential.
Currently, there is a redistribution of power in the crypto market, but for experienced traders, this can be a great opportunity to earn. The key is to stay informed, keep emotions in check, and manage risks wisely. 🚀