Bitcoin trades above $100,000 again

And Bitcoin off of some of those lows that we saw trading above $100,000 a coin, but still significantly off the record highs down around 20%. Now, analysts have been pointing to something called whale selling as a catalyst for this slowdown. What is whale selling and and how is that contributing to the pullback that we're seeing in Bitcoin?

Yeah, this is long-term holders that hold a large amount of Bitcoin and we've seen that there's been whale selling which has put pressure on the market. The strategist are pointing to 400,000 Bitcoin uh that have been sold by long-term holders over the past month. That's according to 10X research. You also have compass point which pointed out that net sales from long-term holders has exceeded uh 1 million Bitcoin since uh June 30th. So, that's a significant amount of Bitcoin to uh be selling into the market, but especially over the last month when we've seen so much uh volatility.

The question is whether or not the market has capitulated or whether or not we could see a leg lower before going higher because the strategists are still pointing to a bull market uh for Bitcoin, but some of the moves that the market has seen that investors have seen over the last several sessions uh have certainly been concerning given that this is supposed to be a seasonally strong month for Bitcoin and October was supposed to be a strong month. This is the first time that last October, this past month was the first time that uh Bitcoin did not perform well since 2018. and in 2018 when it went down in October, it then subsequently went down about 37% in November. So certainly, the fact that it did not do well last month does not bode so well for this month.

And I want to dig into that question and as whether or not we've seen full capitulation, whether or not we could go lower because it feels like we do have a lot of risks in the background from the shutdown and then more hawkish commentary from the Fed as well.

Yeah, that's right. So, um, look, uh Funstrat uh Sean Farrell was questioning just a couple of days ago whether or not uh you could see a bit of a leg lower before going higher. Uh compass point is saying that they're thinking that 95,000 would be or just above 95,000 would be the support with uh compass points at Engel basically saying that he doesn't really see any near-term catalyst yet. Uh, but there are catalysts which could send Bitcoin to the upside and that would be the tailwind of liquidity. We've talked about this before. Liquidity is very important to Bitcoin and the fact that the Treasury General account has been uh sort of not been drawn on because of the government shutdown. That's not been that has not voted well for liquidity and Bitcoin. So, if the government reopens soon, then that would be supposedly a tailwind for Bitcoin. If a strategy were to go into the S&P 500, then perhaps that would also be a tailwind. Uh uh legislation in Congress that's that's also being looked at, that also would be a tailwind. So, there are some catalysts that could send Bitcoin higher, the question is when those would come.