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Crypto Market Crash: What’s Really Behind the Bitcoin Sell-Off?

Crypto Market Crash: What’s Really Behind the Bitcoin Sell-Off?

Coinpedia2025/11/05 20:21
By: Coinpedia
BTC-0.19%ETH+0.27%
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Bitcoin is once again under pressure , sliding closer to the key $100,000 level. The decline is shaking confidence across the market, especially since traders had expected strength. Over the past month, long-term holders have sold more than 400,000 BTC, one of the largest waves of selling in the network’s history. 

These are not short-term traders; these are wallets that have held Bitcoin for many years, some since its earliest days. Their selling has generated fear and uncertainty in the market.

Ethereum and other altcoins are also weakening. The selling pressure has drained liquidity, leaving traders cautious and reducing risk appetite across the board. Many investors who bought near recent highs are now underwater.

On-chain data indicates that old Bitcoin wallets, including coins that have remained dormant for years, are suddenly becoming active. This suggests that early Bitcoin adopters and miners are taking profits and reducing their holdings. 

Historically, these early holders could not sell large amounts without crashing the price due to limited liquidity. However, the market has changed. With spot Bitcoin ETFs , institutional inflows, and corporate treasuries now holding Bitcoin, the market can absorb large sales without triggering a massive crash.

Thanks to this increased liquidity, early investors are now distributing their holdings gradually and strategically.

Macro investor Jordi Visser describes this phase not as a market failure but as Bitcoin’s “IPO moment.” In traditional finance, early investors reduce exposure when a company matures and institutional capital steps in. The same appears to be happening with Bitcoin today. Unlike previous cycles, selling from large holders is no longer crashing the price. 

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Instead, Bitcoin is consolidating sideways in what appears to be a prolonged stabilization phase. Visser believes this marks the transition from early adopters to global capital, where ETFs, corporations, and even sovereign funds begin accumulating Bitcoin as a long-term asset.

Despite all this selling, Bitcoin is still holding above $100,000, a remarkable feat considering the amount of supply dumped into the market. Analysts suggest this demonstrates market maturity.

Technically, Bitcoin’s price is currently compressing into one of the tightest volatility ranges seen in nearly two years. Historically, such low volatility periods often precede significant moves. Additionally, global liquidity is rising again, which has historically benefited Bitcoin. This suggests that the current selling pressure may be temporary.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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