FameEX Hot Topics | Bitcoin Sell Pressure Likely to Rise After 49.7K BTC On-Chain Movement

Bitcoin is facing significant downward pressure, with the potential for the price to dip below $94,000 again as market sentiment turns negative for the first time since November 2024. A mix of factors has contributed to this shift, including a lack of enthusiasm in the crypto community and growing uncertainty about upcoming regulatory developments. This change in sentiment comes at a time when the market had been hoping for positive news to drive prices higher.

After a period of relative optimism, Bitcoin recently experienced a decline that saw its price fall below the $100,000 mark, triggering a massive liquidation event across the cryptocurrency market. In total, over $2 billion worth of positions were liquidated, highlighting the intense volatility currently plaguing the market. The crypto industry had been hoping for a boost from a press conference by David Sacks, the Trump administration's crypto czar, on February 4. However, the speech did not deliver the bullish signals that many had anticipated, failing to spark the rally investors were hoping for.

During his address, Sacks focused on the potential creation of a Bitcoin Strategic Reserve but was notably cautious in his approach. He stated that President Trump's current directive was simply to "evaluate" the feasibility of establishing such a reserve, rather than pushing for immediate action. This cautious tone was in stark contrast to the more aggressive promises made during Trump's campaign, which had initially fueled market optimism. As a result, market expectations for a national Bitcoin reserve in the U.S. by 2025 have dropped significantly. PolyMarket, a prediction market platform, reduced the probability of this happening to just 47%, signaling a shift in investor sentiment.

This change in market outlook has created doubts among investors, leading to hesitation and contributing to the decline in Bitcoin’s price. The cautious rhetoric from the Trump administration's crypto czar has led to uncertainty about the future of regulatory support for Bitcoin, and investors are now reevaluating their positions. The lack of clear direction from policymakers has left the market in a state of flux, further compounding Bitcoin’s recent struggles.

Adding to the market’s uncertainty, Bitcoin analyst XBTManager pointed out a significant movement in the market over the past 24 hours. Approximately 49,700 BTC from the 6-12 month spent output age band (SOAB) were spent. This metric tracks the movement of dormant coins, and the recent surge suggests that a large portion of these Bitcoin could soon be sold. Such significant movements often indicate the potential for increased selling pressure in the market, further contributing to the negative sentiment surrounding Bitcoin’s price.

Disclaimer: The information provided in this section is for reference only and does not represent any investment advice or the official views of FameEX.