Crypto Market Faces Selling Pressure Amidst Consolidation Phase

According to Cointelegraph, the cryptocurrency market is experiencing significant selling pressure as crypto whales and long-term holders cash out, keeping prices suppressed. Analyst Jordi Visser draws parallels between the current market dynamics and the aftermath of the 2000s dot-com stock market crash, which saw stocks plummet by up to 80% and took 16 years to recover. Visser notes that venture capitalists, who were forced to hold their investments during the dot-com crash, eventually sold their stocks as soon as they could, contributing to prolonged market suppression. He observes a similar pattern in the crypto market, where venture capitalists and insider investors are selling into every rally, driven by a need for liquidity or redemption. This behavior has been observed across various cryptocurrencies, including Solana, Ethereum, and Bitcoin. Visser emphasizes that while the crypto market is unlikely to take 16 years to rebound, the current consolidation phase is nearing its end, with a maximum of one year left. This analysis comes amid concerns that a bear market for cryptocurrencies and Bitcoin (BTC) began in October, prompting analysts and investment firms to revise their bullish price predictions downward. Some analysts suggest that Bitcoin's price is showing signs of bottoming out around the $100,000 level, although there are fears of a potential drop to $92,000 if selling pressure continues. CryptoQuant analyst Julio Moreno highlights that while whale selling is not inherently problematic, the current market is struggling to absorb the supply being dumped by long-term BTC holders. Since October, the selling by long-term holders has increased, and the demand has contracted, unable to absorb the supply at higher prices. This ongoing sell-side pressure from whales and long-term holders continues to suppress asset prices, as new demand is insufficient to counterbalance the influx of BTC into the market.