Key Points
- Bitcoin has experienced a 10% drop over the past week, but CryptoQuant’s CEO remains unphased.
- Large Bitcoin holders, including Fidelity, ARK Invest, and Grayscale, have reportedly sold parts of their holdings amidst the dip.
Bitcoin has seen a decrease of about 10% over the past week, making this February potentially one of the worst since 2018. However, Ki Young Ju, CEO of CryptoQuant, remains unfazed, stating that only inexperienced investors would sell during this dip.
Bitcoin’s Bull Cycle
On February 27, Ki highlighted in a post on X that a 30% correction during a Bitcoin bull cycle is typical, pointing out that Bitcoin dropped 53% in 2021 yet still bounced back to achieve a record high. He emphasized that buying when prices increase and selling when they decrease is not a sound investment strategy and encouraged investors to stick to a clear plan.
Ki’s statements come amidst reports that large Bitcoin holders might be capitalizing on the current dip. Arkham Intelligence, a blockchain analytics firm, revealed that Fidelity, ARK Invest, and Grayscale have sold parts of their Bitcoin holdings as the price fell below $90,000.
Large Bitcoin Holders Selling Off
While the exact extent of these activities remains uncertain, Arkham reported in a February 27 post on X that BlackRock, the world’s biggest asset manager, also sold $150 million in Bitcoin. However, data from BiTBO shows that institutions are still holding onto Bitcoin, with BlackRock’s clients owning over 583,320 BTC, valued at approximately $50.2 billion.
As Bitcoin’s value decreased, CoinGlass data revealed over $765 million in liquidations in the last 24 hours, adding to the $1.5 billion wiped out on February 25. SoSoValue data also indicates that the market dip coincided with the largest one-day withdrawal from spot Bitcoin ETFs since their inception, with $937.78 million withdrawn on February 25.
Bitcoin’s price has fallen around 20% from its peak of $109,225 since Donald Trump took office in mid-January. After Trump’s election victory and expectations for a more crypto-friendly regulatory environment, there was a surge of optimism, followed by the current sell-offs. However, hopes for swift pro-crypto policies seem to have dwindled since then.
