Bitcoin has experienced a significant shift as major holders, often referred to as “whales,” have sold billions of dollars worth of the cryptocurrency following its peak at over $100,000. This mass offloading has raised concerns regarding the sustainability of Bitcoin’s bull run, with many investors questioning whether this is merely a temporary setback or a sign of a longer-term decline.
According to data from CryptoQuant, the recent sell-off indicates a growing supply of Bitcoin on the market that is exceeding current demand. This situation typically leads to downward pressure on prices, suggesting a shift into what is known as the “distribution phase” in market cycles. In a recent tweet, CryptoQuant founder Ki Young Ju noted that the sell-off began shortly after Bitcoin surpassed the $100,000 threshold, further complicating the market outlook.
Market Dynamics Shift as Demand Weakens
Earlier in the year, the market showed signs of resilience, bolstered by strong inflows into spot Bitcoin exchange-traded funds (ETFs) and consistent purchasing activity from companies like MicroStrategy. These factors provided essential support, allowing Bitcoin to maintain its value and delay any significant downturn. However, Ju has now warned that the 2024–2025 bull run may have already peaked, particularly as ETF inflows begin to slow.
As institutional demand cools, the potential for renewed selling pressure looms. Ju emphasized that if the current supports fade, “sellers will dominate again.” Supporting this perspective, on-chain data reveals an increase in whale transactions alongside a decline in stablecoin inflows—both indicators that may signal a market cooldown.
According to Samson Mow, CEO of JAN3, the recent price pullback can also be attributed to short-term investors cashing in on profits after experiencing gains of between 20% and 30%. This behavior is not unusual during a bull cycle and often marks a natural correction phase.
Key Levels to Watch as Bitcoin Trades Below $110,000
The coming weeks will be pivotal for Bitcoin’s trajectory. Analysts are closely monitoring the $111,700 support zone, which could be a decisive level determining whether Bitcoin will experience further gains or enter a prolonged correction phase. As of now, Bitcoin is trading around $105,448, having dipped slightly on the day. Notably, trading volume has increased, indicating that the conflict between buyers and sellers is intensifying.
In conclusion, while the crypto market is known for its volatility, the recent actions of Bitcoin whales and the cooling of institutional demand introduce a new level of uncertainty. Investors will need to watch key support levels closely as the market navigates this critical juncture.
