Bitcoin BTC/USD has dropped 16% over the past month, triggered by a wave of selling from long-term "OG" holders to smaller retail traders and institutions.
What Happened: A prominent market commentator said this type of distribution typically occurs near the late stages of bull cycles, as veteran holders take profits and new entrants absorb supply.
Even 10+ year holders, historically the strongest hands, are moving coins on-chain, marking the largest-ever transfer of BTC from old holders to new ones.
Despite the heavy selling, strong inflows from new buyers have kept prices relatively resilient.
He warns that these new investors lack experience with deep Bitcoin corrections, meaning a future downturn could trigger panic selling and potentially one of the most brutal bear markets in Bitcoin's history.
For now, the supply rotation continues, with OGs still distributing and institutions accumulating, suggesting short-term upside may remain intact.
Also Read: Bitcoin, Ethereum, Solana, XRP Crater 5% As Traders Warn Of More Downside
Why It Matters: A major whale known for shorting on Hyperliquid has reportedly offloaded 13,004 BTC in October, including 1,200 BTC (~$132 million) sent to Kraken last weekend.
The entity's moves are having a notable impact on market sentiment, CryptoQuant data shows.
Another long-time holder, Owen Gunden, deposited 3,265 BTC (~$364.5 million) to Kraken since Oct. 21, according to Lookonchain.
Bitinfocharts data shows a decline in mid-sized wallets (10–100 BTC) from 132,902 to 132,418 in the past week, reflecting ongoing redistribution.
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