- CryptoQuant CEO believes Bitcoin’s correction is normal and warns against panic selling.
- BlackRock offloaded $150M BTC while other institutions reduced holdings amid the market dip.
The fall in Bitcoin’s price saw a spurt in activity with some institutional buyers offloading millions worth of BTC. Numbers from Arkham Intelligence suggest that Grayscale, ARK Invest, and Fidelity sold some Bitcoin reserves as prices dropped below $90,000.
As we reported earlier, BlackRock also shifted $150 million worth of BTC, which raised speculation about sentiment from institutions.
FIDELITY SOLD
ARK SOLD
GRAYSCALE SOLDBUT BLACKROCK… ALSO SOLD $150M $BTC pic.twitter.com/Zfn4W2iIhk
— Arkham (@arkham) February 26, 2025
Despite these sales, CryptoQuant CEO Ki Young Ju downplayed concerns, affirming that these kinds of corrections, like 30%, are a hallmark of Bitcoin bull cycles. In previous cycles, prices have gone as low as 53% before Bitcoin rallied once again into new all-time highs.
Shareholders’ advice: Selling in a recession is a beginner’s mistake. Instead, he advised having a clear investing strategy in preference over a reaction towards short-term price fluctuations.
Bitcoin Short-Term Holders Show Signs of Weakness
Market data also supports short-term Bitcoin holders becoming increasingly reluctant. The 30-day accumulation trend in these short-term holders is negative, a signal that is historically linked with market peaks. Assuming it holds, the drop can be seen as a signal towards increased sell pressure in the short run.
Long-term accumulation trend on a 365-day basis also reflects stagnation. It’s not in red territory yet; another drop might imply that the prime bull cycle is already over. However, with Bitcoin’s volatile price fluctuations, it is tricky to decide whether a new leg up is in the cards.
Robert Kiyosaki, author of Rich Dad Poor Dad, also joined the discussion, calling Bitcoin’s decline a buying opportunity. Dismissing Bitcoin itself as a cause for concern, Kiyosaki cited flaws in the traditional monetary system. In his estimation, total U.S. debt and lowered confidence in the dollar are more threatening than Bitcoin volatility.
BITCOIN CRASHING
Bitcoin is on SALE
I AM BUYINGWHY: The problem is not BITCOIN
THE PROBLEM is our Monetary System and our criminal bankers.America’s bankrupt. Our debt including social programs, such as Medicare and Social Security, including our $36 trillion debt is…
— Robert Kiyosaki (@theRealKiyosaki) February 27, 2025
Glassnode Highlights Who Is Taking the Biggest Losses
Blockchain analytics Glassnode brought into perspective who exactly is selling in the recent Bitcoin drop. Recent buyers have recorded over $2.16 billion in realized losses on February 25-27 data.
Most are from newer buyers who have bought in over the last seven days, with 1-day to 1-week buyers having $927 million in losses, which is nearly 43% of newer investor totals.
Yet, long-term owners, those holding Bitcoin for more than six months, saw little realized losses. That is, though new buyers are in a state of panic sell-offs, seasoned buyers are not really impacted.
In contrast, losses among those who held #BTC for 3m-6m or longer remain negligible:
🔵3m-6m cohort: $6.5M (0.3% of young cohort losses)
🟢6m-12m cohort: $3.2M (0.15%)This suggests that those who entered in H2 2024 or earlier are largely holding, while more recent buyers are…
— glassnode (@glassnode) February 27, 2025
The Fear & Greed Index is at its lowest level in June 2022, which is a signal that retail investor sentiment is in a state of elevated fear. Some believe that this is a prelude to a final rush, which can take Bitcoin into the $120,000-$130,000 level again with a revival in bullish sentiment.
So basically we tested the MA200 and retail is scared AF right now. Lowest Fear&Greed index since June 2022!
But I think we might have one last leg up – Wave 5 of 5 📈
🎯 Target: $120-130k
🔨 Key Resistance to break#crypto pic.twitter.com/v4nyNjbf2z— CryptOpus (@ImCryptOpus) February 27, 2025