Bitcoin (BTC) has struggled to escape its downward trend since reaching its peak in March, leaving many investors disappointed. However, Markus Thielen, founder of 10x Research, has shed light on the key reasons behind the ongoing decline. According to him, whale sales and large-scale token unlock events are among the main factors contributing to Bitcoin’s price pressures.
Why Bitcoin is Stuck in a Correction
Thielen emphasizes that whale sales have been a significant driver of Bitcoin’s downward momentum since March. Additionally, massive token unlocks have exacerbated the situation, creating strong selling pressure in the market. These sales have offset the positive impacts of stablecoin inflows and the demand from spot Bitcoin ETFs. While robust inflows from leveraged futures have helped prevent a steeper decline, the pressure from whale sales continues to hinder Bitcoin’s recovery.
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Looking ahead, Thielen predicts significant movements in Bitcoin over the next 6 to 12 months. The key factors to watch include continued interest rate cuts from the Federal Reserve as inflation remains low, and strong corporate earnings in the U.S., which could boost demand for Bitcoin. As the U.S. economy grows, institutional interest in Bitcoin may rise, giving hope to investors. According to Thielen, these developments could positively impact Bitcoin’s price and signal a brighter outlook for long-term holders.
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The Impact of Whale Sales on Bitcoin
Whale sales, particularly since March, have placed heavy downward pressure on Bitcoin’s price. Large investors have continued to offload their BTC holdings, driving the price down further. These sales, combined with early token holders exiting their positions, have created a wave of selling in the market. Despite efforts from strong stablecoin inflows and futures markets to counterbalance this, the effects of whale sales are still being felt, preventing Bitcoin from breaking out of its downward trend.
Meanwhile, as noted by The Bit Journal, token unlock events have also contributed to Bitcoin’s recent price weakness. As early investors release their tokens into the market, the increased supply has weighed on prices. With more unlocks on the horizon, this pressure is expected to continue. However, Thielen remains optimistic about Bitcoin’s future, noting that strong inflows are supporting the market and providing a foundation for future growth.
Will Bitcoin Rebound?
Despite the challenges posed by whale sales and token unlocks, Bitcoin could still stage a recovery, particularly if the Federal Reserve continues with rate cuts and the U.S. economy shows signs of growth. Thielen predicts that Bitcoin could see a significant rebound within the next 6 to 12 months, providing hope for investors looking to ride the next wave of bullish momentum.
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