Analysts warn that Bitcoin holdings companies may trigger the next major crash.

Gate News bot message, crypto assets analyst DonAlt warns that Bitcoin may be brewing a storm - and the drivers of this storm may not be speculators, but institutional investors.

He believes that companies hoarding Bitcoin may ultimately become the largest source of selling pressure in the market.

Currently, global companies hold over 1.1 million Bitcoins (worth over $117 billion), and he believes that the factors driving this cycle's rise may also accelerate the next crash.

According to this analyst, the next decline may resemble the catastrophic bear market of 2018, when Bitcoin plummeted more than 80% from its peak. "No one is prepared for the intensity of the next bear market," he said, noting that institutional holders may engage in liquidation during financial stress or price drops.

Nevertheless, DonAlt remains optimistic about the short-term trend. He pointed out that as long as Bitcoin stays above $101,000, its trend will remain unchanged. However, if it falls below that level, it could quickly drop to $95,000 or even $90,000.

Source: Cryptodnes

BTC-1.51%
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
0/400
No comments
Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate app
Community
English
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)