The Wolf Of All Streets Bitcoin Price Just Set Another All-Time High, What's Next For Crypto?
The Bitcoin Coiled Spring: Why Early Holders Are Selling and New Treasury Companies Are Buying
Bitcoin's new all-time high is driven by intense buying from treasury companies and ETFs, but the price advance is balanced by selling from early large holders, likely old miners, who are offloading BTC quietly through OTC deals.
These big holders, sitting on decades-long BTC accumulations, prefer OTC sales or in-kind investment into treasury companies to avoid taxable events, which has created a unique supply and demand dynamic where buying and selling roughly offset, preventing a sharp immediate price spike.
New buyer profiles like MicroStrategy and BlackRock represent corporate treasury buyers accumulating vast quantities, increasing Bitcoin scarcity. This tug-of-war between old-school miners and new institutional demand makes Bitcoin a "coiled spring" with strong buildup, poised for a possible significant move when these dynamics shift.
This mechanism also fuels premiums in Bitcoin treasury company stocks, which could maintain strong performance in the market over months or years, reflecting growing institutional appetite and decreasing available supply from large holders reluctant to sell outright.
BTC Market Dynamics: Old Vs New
- Long-term holders with large BTC wallets are selling, mainly old miners and early investors.
- Newer entrants like MicroStrategy and BlackRock's wallets between 100-1000 BTC are net buyers, balancing the market.
Early Holders Sell OTC for Privacy
- Early Bitcoin holders hesitate to sell on exchanges after years of hacks and volatility.
- OTC markets now offer privacy and convert BTC to massive fiat without exchange exposure, prompting early sellers.