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Bitcoin is facing its biggest selling pressure since the collapse of 3AC but remains resilient.
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MicroStrategy purchases 7,633 BTC indicating a strong institutional belief in Bitcoin.
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Market volatility increases with macroeconomic events and influences Bitcoin’s price.
Bitcoin is currently experiencing its biggest selling pressure since the collapse of Three Arrows Capital (3AC), in 2022. Whale investors have sold BTC at nine times the average annual rate.
Bitcoin is resilient and maintains a price of around $100,000. Analysts believe this could be a sign of seller exhaustion. The crypto market could be affected by upcoming economic events such as the U.S. inflation report and Federal Reserve Chair Jerome Powell’s testimony.
Whale Selling reaches extreme levels
According to Bitwise Europe’s head of research Andre Dragosch Bitcoin experienced its highest level of selling pressure in almost two years. Large transactions on spot markets suggest that major investors are cashing in.
Bitcoin’s ability, despite the pressure, to remain above key levels suggests a strong demand. Dragosch believes that the market may be reaching a stage where sellers are no longer able to sell.
Strategy Buys More Bitcoin
MicroStrategy’s aggressive accumulation strategy continues even as whales offload. Lookonchain, a blockchain tracking platform, reported that MicroStrategy bought 7,633 BTC for $742 million last week at an average price $97.255. This brings MicroStrategy’s total Bitcoin holdings up to 478.740 BTC worth approximately $46.55 Billion, with an average price of $65,033 for each BTC.
MicroStrategy’s strategy reflects a strong institutional belief in Bitcoin’s long-term potential. Its continued accumulation indicates that some large investors continue to see Bitcoin as a desirable asset despite ongoing volatility.
Related:Bitcoin Price and MVRV Momentum Warning Signs for Investing
Echoes of 3AC Crypto Contagion
The last time Bitcoin experienced such significant selling pressure, was in June 2022 after the collapse of Three Arrows Capital. The hedge fund in Singapore, which once managed assets worth over $10 billion, suffered massive losses after trading around $500 million of Bitcoin with Luna Foundation Guard.
The 3AC fallout caused severe disruptions in the crypto sector. Lenders like BlockFi Voyager and Celsius filed for bankruptcy because of their exposure to the fund. Analysts warn that the current selling wave is not as severe, but high whale activity can cause sharp price swings.
Macro Events Fuel Crypto Swings
QCP Capital emphasized that the current price fluctuation is a result of various macroeconomic events. The turbulence last week was a result of DeepSeek’s activity on the market and changes in U.S. Trade Policy. The financial markets were briefly rattled by the former U.S. president Donald Trump’s proposal to impose 25% tariffs on aluminum and steel.
Concerns about new trade tensions have been raised because Mexico and Canada are two of the U.S.’s largest steel suppliers. Investors are further uneasy about the stance on possible sanctions against Japan. This comes after the White House recently blocked Nippon Steel from acquiring U.S. Steel.
Bitcoin Sentiment is Cautious
Bitcoin briefly dropped below $95,000 as a result of the uncertainty last week, but quickly recovered. Analysts believe that the price movements were driven by market sentiment, rather than fundamentals. Right now, traders are favoring put options until April. This signals a cautious sentiment and the lack of strong bullish factors.
Related:Bitcoin tests $100K resistance: Can it hold this level?
Bitcoin’s price is $97,449.43 at the time of publication. This represents a 1.05% gain in the last 24 hours, and a 2.777% gain in the last week. The market cap of Bitcoin is $1.93 trillion with a supply of 20,000,000 BTC.
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