The leading cryptocurrency Bitcoin (BTC) experienced sharp and sudden declines after its last ATH on October 6.
At this point, Bitcoin, which fell below $ 100,000, could not escape the downward trend, and Fidelity analyzed the latest situation of BTC.
Fidelity noted in its recent report that the recent weakness in Bitcoin is due to gradual selling by long-term investors.
Fidelity Research Vice President Chris Kuiper pointed to long-term investors as the main reason for the decline.
“The reason Bitcoin is showing weakness despite steady buying by ETFs and companies is because long-term investors are gradually selling.”
Kuiper said that according to on-chain data, long-term investors are currently selling slowly over time, meaning they are in no rush to exit the market.
According to the analyst, many long-term investors expected Bitcoin to experience a major rally in October and November based on past price action. However, this did not materialize, leading to investor disappointment.
At this point, long-term investors began selling gradually, rather than all at once, as the year-end approached. This caused Bitcoin's weakness to continue and prevented the expected upward momentum.
*This is not investment advice.