Crypto whales and long-term holders are cashing in, putting constant selling pressure on the markets, keeping crypto prices low, similar to market dynamics following the dot-com stock market crash in the 2000s, according to analyst Jordi Visser.
Visser He said The current price action in the cryptocurrency market is reminiscent of the period following the dot-com stock market bubble of 2000, which saw stocks collapse by up to 80%, followed by 16 years of consolidation before regaining their previous highs.
This meant that venture capitalists, who had invested in the technology during the crash, were forced to hold on to their investments due to mandatory lock-in periods while they were in the water and then desperately sell them on the markets once they could, Visser said. He added:
“Many stocks were trading below their IPO prices. We have a similar situation happening now. Venture capital investors and insiders, desperate for liquidity or redemption, sold at every rally. This is what happened to me for Solana, for Ethereum, for every altcoin, for Bitcoin.”
Visser explained that it would not take 16 years for crypto prices to rebound, but he was using the dot-com effects of the 2000s to illustrate the dynamics of the sell-side squeeze, and said that cryptocurrencies are nearing the end of this consolidation phase, with a maximum of one year remaining.
The analysis came amid fears of a bear market for cryptocurrencies and Bitcoin (BTC) starting in October, prompting several analysts and investment firms to revise their more bullish price forecasts by lowering their forecasts.
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Has Bitcoin reached the $100,000 level?
BTC price is showing signs of reaching around the $100,000 level, according to some analysts, but others fear a potential drop to $92,000 if selling pressures continue to mount.
Whales and long-term holders typically reap all-time highs, and selling whales isn’t a problem in and of itself, says CryptoQuant analyst Julio Moreno. He said.
Selling pressure from whales and long-term holders only suppresses asset prices if there is no new demand to absorb the supply of BTC that is being dumped on the markets.
“Since October, sales to long-term bondholders have increased, there is nothing new here, but demand is shrinking, unable to absorb the supply of long-term bondholders at a higher price,” Moreno said.
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The post Current Crypto Market Price Action Similar to Early 2000s Stocks — Analyst first appeared on Investorempires.com.
