Bitcoin Veterans Cashing Out Could Trigger Deeper Losses, Schiff Claims
Overview
Bitcoin’s price has experienced a significant decline, dropping more than 30% from its all-time high. Recent actions by long-term holders are raising concerns about the potential for deeper market losses. Notable market figures have commented on the implications of these movements, indicating a shift in market dynamics.
Current Market Situation
Bitcoin is currently trading around $85,500, having briefly fallen to $82,000. This decline follows a peak price of $126,000. Traders have noted that the market’s liquidity has thinned, leading to larger-than-usual price swings. The behavior of long-term holders has changed, with many veteran investors starting to sell their positions. This shift is believed to alter the market’s reaction to stress, potentially exacerbating price volatility.
Peter Schiff’s Warning
Gold investor Peter Schiff has expressed concerns regarding the recent selling activity among veteran Bitcoin holders. He described this phenomenon as Bitcoin’s “IPO moment,” suggesting that an influx of supply from long-term holders could lead to larger future selloffs. Schiff’s perspective aligns with observations of significant on-chain movements and notable outflows from exchange-traded funds (ETFs). When long-term holders sell near market peaks, it often results in more violent price action, especially if many holders choose to sell simultaneously.
Whale Activity and Major Sales
Reports indicate that whales and early investors have moved over 400,000 BTC in October, contributing to significant selling pressure. One notable transaction involved an early investor liquidating an entire stake of 11,000 BTC. Additionally, retail figures have also engaged in substantial sales, with one individual announcing a sale of approximately $2.25 million, claiming to have purchased Bitcoin at a much lower price.
Analysts from Bitfinex have identified two primary drivers for the recent price drop: the selling actions of long-term holders and the liquidation of leveraged positions in derivatives markets. When margin positions are unwound, it can lead to a cascade effect, driving prices down further before finding support.
ETF Flows and Retail Sentiment
Recent data from Bloomberg and fund filings revealed that nearly $1 billion was pulled from Bitcoin ETFs in a single session, marking one of the largest daily outflows for the group. This outflow included significant withdrawals from major funds like BlackRock’s IBIT and Grayscale’s GBTC. Over the past month, ETF products have seen approximately $4 billion in net outflows, with estimates suggesting that every billion withdrawn could lead to a notable negative impact on Bitcoin’s price.
Despite these outflows, there was a recent counter-move, with reports showing that ETFs experienced $238 million in inflows, highlighting the volatility of market sentiment.
Impact on the Crypto Market
- The decline in Bitcoin’s price and the increased selling from long-term holders may lead to heightened volatility in the market.
- The significant outflows from Bitcoin ETFs could indicate a shift in investor sentiment, impacting future price stability.
- The movement of coins from long-term holders to casual investors may amplify the effects of future selloffs.
- Market participants will closely monitor the actions of veteran holders, as their decisions could influence the severity of potential market corrections.
- The overall liquidity in the market remains a concern, with thinner conditions potentially exacerbating price swings.
Updated: 11/23/2025, 10:21:44 PM
