Why does Bitcoin crawl this cycle? Analyst reveals the hidden factors

The current upward movement of Bitcoin feels unusually slow compared to earlier cycles. Experts attribute the current slowness on the market to the OG -Walvissen.

Willy Woo, for example, believes that this cohort of early investors has delayed the growth of BTC, while the market has difficulty absorbing their enormous profit.

Bitcoin’s slow upward trend

In his last post, prominent on-chain analyst Willy Woo explained That a significant part of BTC offering is concentrated in the hands of early whales that gathered heavily around 2011, when Bitcoin acted at $ 10 or less.

These long-term holders are now on massive non-realized profits, and when they sell, the market requires significant new capital influx-more than $ 110,000 for each BTC-OM to absorb their turnover without reducing prices.

This creates resistance in price rating, because the market has to constantly compensate for the sales pressure of these original whales, making Bitcoin’s climb slower and gradual in this cycle.

“This difference in a cost basis, the offer they possess and their sales percentage has major consequences for how much new capital that should come in to levy the price. You can view this if BTC goes through growing pains until these 10,000x profit investors are absorbed.”

An important example of this whale activity comes from a Bitcoin OG that is now going hard to Ethereum. Lookonchain’s newest findings unveiled A massive step of the whale that originally received 100,784 BTC seven years ago, worth $ 642 million then and more than $ 11.4 billion on 25 August. In the past five days, this early holder is quickly shot from Bitcoin in Ethereum.

They put around 22,769 BTC, which is around $ 2.59 billion, for sale at Hyperliquid, and used the revenue to buy 472,920 ETH ($ 2.22 billion) on spot markets, while at the same time a 135.265 ETH -long position worth $ 577 million opened.

The scale and speed of these transactions indicate aggressive profit making on BTC and a strong, very lever deployment on the advantage of Ethereum.

Apart from this structural whale-driven headwind, short-term volatility also plays a role in the Bitcoin process, especially during the weekend.

Structural weakness

Bitcoin’s sharp drop this weekend is not random, but a result of structural weaknesses in the market. Weekends usually see thinner liquidity, because both the spot and derivatives are decreasing volumes, which makes order books vulnerable to manipulation by large players, according to cryptoquant.

Data on chains to show That BTC exchange reserves often rise before this weekend falls as sales pressure increases, while excessive long positioning at derivatives creates the conditions for liquidation cascades.

At the same time, statistics such as SOPR short -term holders who take a profit, which further strengthens volatility. As such, these factors form some cryptoquant a ‘liquidity trap’, whereby whales exploit weak market conditions to activate Stop-Lossclusters and fuel-sharp movements.