Bitcoin's recent price decline to $92,774 surprised many observers. Contrary to speculation, it is not ETFs or institutional investors who are responsible, but long-term holders (hodlers), revealing strange behavior of the latter.
Bitcoin: A price correction to $92,000 triggered by the Hodlers
The price of BTC fell by more than 5.6% in the last 24 hours, reaching $92,774 as of 8:52 UTC on November 26. Contrary to what investors thought, ETF flows were not primarily responsible for the selling pressure on Bitcoin. This significant decline was instead attributed to selling by long-term holders, who decided to realize their gains. This created significant selling pressure on the Bitcoin market.
Eric Balchunas, Senior ETF Analyst, explained this : “ I see a lot of people on CT (Crypto Twitter) perplexed/frustrated to see Saylor buying $5 billion worth of bitcoin without the price going up. This is the same thing I sometimes hear about ETFs after big flows. Here's some data showing what I've been saying for a long time: the call is coming from inside the house, it's the long-term hodlers. »
The complex dynamics of the crypto market
This situation highlights the complex dynamics of the crypto market, where price movements are not always dictated by large institutions or new financial products like ETFs. Hodlers, who hold their assets for long periods of time, play a crucial role in market stability and volatility, especially when it comes to Bitcoin.
Finally, although ETFs and institutional investors are often blamed for market fluctuations, it is essential to recognize the significant impact of hodlers. Their buying or selling behavior can trigger major price corrections, like the one seen recently in Bitcoin. At the time of writing, BTC has fallen further and is trading around $91,700.
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