Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesStocksEarnInstitutionAI & More
Crypto Market Crash: What’s Really Behind the Bitcoin Sell-Off?

Crypto Market Crash: What’s Really Behind the Bitcoin Sell-Off?

Coinpedia2025/11/05 20:21
By:Coinpedia
Story Highlights

Bitcoin is once again under pressure , sliding closer to the key $100,000 level. The decline is shaking confidence across the market, especially since traders had expected strength. Over the past month, long-term holders have sold more than 400,000 BTC, one of the largest waves of selling in the network’s history. 

These are not short-term traders; these are wallets that have held Bitcoin for many years, some since its earliest days. Their selling has generated fear and uncertainty in the market.

Ethereum and other altcoins are also weakening. The selling pressure has drained liquidity, leaving traders cautious and reducing risk appetite across the board. Many investors who bought near recent highs are now underwater.

On-chain data indicates that old Bitcoin wallets, including coins that have remained dormant for years, are suddenly becoming active. This suggests that early Bitcoin adopters and miners are taking profits and reducing their holdings. 

Historically, these early holders could not sell large amounts without crashing the price due to limited liquidity. However, the market has changed. With spot Bitcoin ETFs , institutional inflows, and corporate treasuries now holding Bitcoin, the market can absorb large sales without triggering a massive crash.

Thanks to this increased liquidity, early investors are now distributing their holdings gradually and strategically.

Macro investor Jordi Visser describes this phase not as a market failure but as Bitcoin’s “IPO moment.” In traditional finance, early investors reduce exposure when a company matures and institutional capital steps in. The same appears to be happening with Bitcoin today. Unlike previous cycles, selling from large holders is no longer crashing the price. 

  • Also Read :
  •   Ethereum Price Prediction 2025: Will ETH Break $4,000 or Crash to $1,800?
  •   ,

Instead, Bitcoin is consolidating sideways in what appears to be a prolonged stabilization phase. Visser believes this marks the transition from early adopters to global capital, where ETFs, corporations, and even sovereign funds begin accumulating Bitcoin as a long-term asset.

Despite all this selling, Bitcoin is still holding above $100,000, a remarkable feat considering the amount of supply dumped into the market. Analysts suggest this demonstrates market maturity.

Technically, Bitcoin’s price is currently compressing into one of the tightest volatility ranges seen in nearly two years. Historically, such low volatility periods often precede significant moves. Additionally, global liquidity is rising again, which has historically benefited Bitcoin. This suggests that the current selling pressure may be temporary.

0
0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

Understand the market, then trade.
Bitget offers one-stop trading for cryptocurrencies, stocks, and gold.
Trade now!

You may also like

The AI boom may follow the path of the 19th-century railway bubble, and builders may not be the ultimate winners

Goldman Sachs analyst Bobby Molavi compared the current situation to the 19th-century British railway mania: 500 companies spent more than the nation's annual income building 8,000 miles of railway, with most early investors losing out, while the real beneficiaries were the later "passengers." He pointed out that the current AI craze is driven by both debt and momentum, and that the S&P 500’s forward P/E ratio of 18x is only "a bit cheaper." Whether the builders can retain value is uncertain, and history does not offer an optimistic answer.

华尔街见闻•2026/11/12 03:56
The AI boom may follow the path of the 19th-century railway bubble, and builders may not be the ultimate winners

If Anthropic's IPO goes smoothly and the stock price rises next week, then everything remains the same for AI. Otherwise, some companies will go bankrupt.

The shrinking valuations of two major giants have triggered a chain reaction—investors are adopting more conservative revenue multiples for AI startups and are directly halting high-valuation financing for companies with zero revenue. Multiple venture capital firms have advised their portfolio companies to lower valuation expectations and to quickly build up cash reserves. Market participants warn that the outcome of Anthropic’s IPO will be a barometer for the industry: if successful, the boom will continue; if it fails, some companies may face elimination.

华尔街见闻•2026/11/12 03:46

After the Brazilian election, political discount deepens; Morgan Stanley remains bullish on Petrobras (PBR.US), focusing on fuel pricing and dividends

Morgan Stanley still maintains its most optimistic "Overweight" rating, but has lowered its year-end 2027 target price from $31 to $25.

智通财经•2026/11/12 03:42
After the Brazilian election, political discount deepens; Morgan Stanley remains bullish on Petrobras (PBR.US), focusing on fuel pricing and dividends

Corning (GLW.US) receives initial "Buy" rating from Jefferies! AI factories driving a fiber optic rush, with a potential global supply gap of up to 30%

For Corning, the recent profit growth mainly comes from the expansion of AI clusters. As the number of optical links crossing cabinets and campuses increases, customers need to deploy more optical fibers within limited conduit and cabinet space, thus driving demand for high-density optical cables and connection systems.

智通财经•2026/11/12 02:47
Corning (GLW.US) receives initial "Buy" rating from Jefferies! AI factories driving a fiber optic rush, with a potential global supply gap of up to 30%