Bitcoin has been in a downtrend since its ATH in March. While the declines have been wearing on investors, 10x Research founder Markus Thielen explained the real reasons behind the declines.
At this point, Thielen said that whale sales and token unlocks are behind the Bitcoin correction.
What are the Reasons Behind the Bitcoin Correction?
10x Research founder Markus Thielen said in a recent report that since March, the Bitcoin price has been facing corrections due to large whale sales and massive token unlocks.
Thielen noted that whale sales and token unlocks have broken and offset the bullish trend from stablecoins, spot Bitcoin ETFs, and futures leverage.
“While early token holders and big whales’ sell-offs have pressured the Bitcoin price since March, strong inflows from tablecoins, spot Bitcoin ETFs, and increased futures leverage have prevented further sharp price declines.
While this is unfortunate, the outlook for Bitcoin remains positive.”
What Events Could Have a Major Impact on Bitcoin?
Stating that he expects big movements in Bitcoin within 6 to 12 months, Thielen explained the events that could have a big impact on BTC.
“An increase in US economic growth is expected to have a significant impact on Bitcoin in the next 6 to 12 months as the Fed continues to cut interest rates due to low inflation and US corporate profits remain strong.”
*This is not investment advice.