Originally published on: October 04, 2024
Bitcoin has been facing a series of corrections since March, and according to a recent report from 10x Research, this downward pressure is due to significant sell-offs from whales and a surge in token unlocks that are flooding the altcoin market.
The report, authored by Markus Thielen, the founder of 10x Research, highlights that while there have been positive factors like increased flows from stablecoins, Bitcoin spot ETFs, and futures leverage, the impact of whale activity and token unlocks cannot be overlooked.
Thielen shared with Cointelegraph his insights on what could potentially impact Bitcoin in the coming months. The report emphasizes that whales, or holders with large Bitcoin balances, have had a significant influence on the market dynamics throughout the year, with many engaging in heavy selling between April and August.
As the bull market peak approached earlier this year, significant whale inflows were observed on exchanges, signaling their intention to cash out. This selling pressure from whales has been a major factor in the struggle for Bitcoin to maintain an upward trajectory.
In addition to whale sell-offs, token unlocks have further intensified the downward pressure on Bitcoin. Since March, $35 billion worth of tokens have been unlocked, flooding the market with additional supply. The report notes a significant increase in token unlocks in October, with $3.9 billion worth of tokens released, up from $1.9 billion in September.
However, the report expects November unlocks to be lower, offering a glimmer of hope for a potential price recovery. Despite the challenges posed by whale sell-offs and token unlocks, institutional inflows from ETFs, stablecoins, and futures markets have helped to stabilize the market, preventing more severe price declines.
In a market where selling pressure and buying support are finely balanced, the ongoing battle between the two forces will ultimately determine the direction of Bitcoin’s price in the near future.
