Bitcoin’s price has experienced a significant decline, plummeting more than 5.6% to $92,774 as of November 26 after reaching a record high of $99,000 on November 22. Experts indicate that this downturn is primarily driven by actions taken by long-term holders rather than by exchange-traded funds (ETFs) or institutional investors. Eric Balchunas, a senior ETF analyst at Bloomberg, noted, “Many in the cryptocurrency community seem perplexed and frustrated by the fact that Saylor can purchase $5 billion worth of BTC without causing a significant price increase. This sentiment mirrors what I occasionally hear regarding ETFs following substantial inflows.” Recent data supports a claim that has been circulating for some time: the source of the call originates from within, specifically from long-term holders.
Recent on-chain data corroborates these observations, revealing that long-term holders divested 128,000 BTC, while U.S. spot ETFs accounted for 90% of the selling pressure. Kyle du Plessis, a crypto trader, stated on X, “Str” ng institutional demand is fuelling BTC’BTC’sly, bringing it closer to the $100K milestone.”
T “e broader market trends have placed additional pressure on various sectors. The recent tariff increases imposed by Donald Trump on China, Mexico, and Canada have led to a stronger U.S. dollar, which in turn is exerting downward pressure on Bitcoin and equity markets. In the past 24 hours, several altcoins, including Ethereum, Solana, XRP, and Dogecoin, have experienced significant corrections, with declines ranging from 5% to 10%.
In the face of a market downturn, Bitcoin continues to exhibit signs of a bullish trend. According to data from CryptoQuant, metrics like the Market Value to Realised Value (MVRV) and Puell Multiple suggest ongoing upward potential in the market. Independent analyst MAC_D observed, “Thi” correction was triggered by leverage overheating, with open interest and estimated leverage ratio hitting annual peaks.” A “0-20% correction is often considered a natural occurrence in the market. The leverage ratio across all exchanges is estimated at 0.24, marking a peak not observed since August 2023. This figure highlights the necessity for potential deleveraging in the market.
The ongoing accumulation by significant holders continues to strengthen the long-term outlook. Sentiment has revealed that wallets containing a minimum of 10 BTC added a total of 63,922 coins in November, valued at around $6.06 billion. The company indicated that any price decline is expected to be short-lived, provided these significant investors continue holding their stakes. Furthermore, well-known crypto analyst Ali Martinez pointed out that the BitcBitcoin’sative Strength Index (RSI) shows a bullish divergence, implying a possible rebound to $95,000 to $96,000 shortly.
Despite BitcBitcoin’sjectory towards the $100,000 mark appearing stable, analysts forecast increased volatility shortly. Joe Consorti, the head of growth at Bitcoin custody firm Theya, highlighted that BitcBitcoin’sce movements have closely followed global liquidity trends, exhibiting a 70-day lag. He indicated that a potential correction of 20-25% could still be on the horizon. These fluctuations are considered integral to the broader market cycle, with analysts highlighting the significance of accumulation during these corrective phases.