Bitcoin’s drop was really unexpected, but things may turn out better than expected thanks to the fact that it is not being sold to the ground by institutions, and there is a silver lining that you should not miss if you think the asset is going down. quickly.
Bitcoin’s drop was really unexpected, but things may turn out better than expected thanks to the fact that it is not being sold to the ground by institutions, and there is a silver lining that you should not miss if you think the asset is going down. quickly.
Even before the US government started selling BTC, spot traders had already been selling their holdings. As traders anticipate an increase in supply, this entry of Bitcoin into the market usually triggers a sell-off.
As expected in these circumstances, the initial market response has been sustained selling pressure. The market reaction to this news has been relatively calm. Some short positions have been opened in anticipation of the supply coming to the market shortly. On the other hand, the closing of long positions has been the main activity.
This suggests that although there is some bearish sentiment, many traders are not actively shorting the market; instead, they are simply retreating. The fact that institutions are not selling Bitcoin aggressively is notable even despite the existing pressure.
This moderation by major shareholders could have a benefit. The market could stabilise sooner than expected if institutional selling does not overwhelm it. Institutions are responding cautiously and persistent selling pressure from spot markets points to an uncertain period ahead.
But Bitcoin could avoid a more severe decline if it manages to hold on to important support levels. The US government and other major holders will have a significant influence on how the price of Bitcoin moves in the near future.
Overall, the possibility of a reversal is present, but some important entries are still required, which have not happened yet.
