- Whale sell-offs and $35 billion in token unlocks have caused Bitcoin price corrections since March.
- Stablecoin inflows, ETFs, and futures markets have helped stabilize the crypto market despite selling pressures.
- Analysts see positive long-term potential as U.S. economic growth and Fed rate cuts may support Bitcoin.
Bitcoin has experienced a series of price corrections since March, largely influenced by large-scale sell-offs from major holders, known as whales, and significant token unlocks that have increased the market supply of altcoins. According to a recent report from 10x Research, these factors have effectively countered the positive effects from stablecoin inflows, Bitcoin spot exchange-traded funds (ETFs), and a rise in futures leverage.
Whale Sell-Offs Drive Market Corrections
The report points to whale activity as a significant factor impacting Bitcoin’s price movement this year. Whales—investors holding more than 1,000 BTC—were particularly active between April and August. According to the report, there were substantial inflows from whales to exchanges as the market approached its peak in February and March 2024, indicating their intent to sell.
This activity suggested that many large holders were actively cashing out, putting pressure on Bitcoin’s upward momentum. Markus Thielen, founder of 10x Research, noted that future Bitcoin growth could depend on several factors, including a potential rise in U.S. economic growth, combined with rate cuts by the Federal Reserve and stable U.S. corporate profits.
Token Unlocks and Institutional Support
The increase in token unlocks has also added selling pressure to the market, with the report noting that $35 billion worth of tokens have been unlocked since March. This influx of new tokens directly increased supply, contributing to Bitcoin’s stagnant price. October alone saw $3.9 billion in token unlocks, compared to $1.9 billion in September. However, a lower amount of token unlocks is expected in November, which could ease some of the current pressure.
Despite these challenges, institutional inflows from stablecoins, Bitcoin ETFs, and the futures market have helped stabilize Bitcoin’s price. These inflows have effectively mitigated the impact of whale sell-offs and token unlocks, preventing a more significant drop in Bitcoin’s value. The report highlights that the broader outlook for Bitcoin remains positive, with potential support from improving economic conditions in the United States.
