Originally published on: November 26, 2024
Bitcoin’s recent price drop of over 5.6% has caught the attention of many, with initial speculation pointing towards institutional investors as the culprits. However, new data suggests that long-term holders, known as hodlers, are the ones triggering this correction.
As of 8:52 am UTC on Nov. 26, Bitcoin is trading at $92,774, showcasing a significant decline in value. The correction follows Bitcoin’s historic surge to over $99,000 on Nov. 22, leading experts to predict a breach of the $100,000 mark by the end of the month.
Contrary to popular belief, it appears that exchange-traded funds (ETFs) are not the driving force behind Bitcoin’s price decline. Senior ETF analyst at Bloomberg, Eric Balchunas, points to data indicating that long-term holders are responsible for the sell-off.
While ETFs have absorbed some of the selling pressure, the majority seems to be coming from hodlers looking to capitalize on gains. This correction could actually benefit the sustainability of Bitcoin’s current rally, especially in light of the leverage present in crypto markets.
Leading figures in the industry, such as Kris Marszalek of Crypto.com, have warned about the need for deleveraging before Bitcoin can surpass $100,000. Despite the recent correction, the estimated leverage ratio across all exchanges remains high, suggesting that more adjustments may be on the horizon.
For those following the market closely, the focus is now on how long-term holders will continue to impact Bitcoin’s price trajectory. Stay tuned for more updates and insights as the crypto landscape continues to evolve.