FameEX Hot Topics | Bitcoin Sell Pressure May Increase Following 49.7K BTC On-Chain Movement

Bitcoin is experiencing considerable downward pressure, and it may dip below $94,000 once again as the crypto market sentiment has turned negative for the first time since November 2024. The market’s lack of enthusiasm and uncertainty about upcoming regulatory developments are contributing to this shift in sentiment.

After a period of relative optimism, Bitcoin recently saw a decline below the $100,000 mark, triggering a massive liquidation event across the crypto space, with over $2 billion worth of positions being liquidated. The industry had hoped for a boost from a speech by David Sacks, the Trump administration's crypto czar, on February 4. However, his address, which focused on the potential creation of a Bitcoin Strategic Reserve, failed to deliver strong bullish signals.

During his press conference, Sacks explained that the current directive from President Trump was simply to "evaluate" the feasibility of establishing a Bitcoin Reserve. This cautious tone stood in contrast to the more aggressive promises made during Trump's campaign. As a result, market expectations for a US national Bitcoin reserve in 2025 have dropped significantly, with PolyMarket lowering the probability to 47%. This cautious approach has raised doubts among investors, contributing to the market’s hesitation and the decline in Bitcoin’s price.

Adding to the uncertainty, Bitcoin analyst XBTManager highlighted a significant move in the market over the past 24 hours. Approximately 49,700 BTC from the 6-12 month spent output age band (SOAB) were spent. The SOAB tracks the period since dormant coins were last moved, and this significant movement suggests that a large portion of these Bitcoin may soon be sold on the market. Such an influx of supply could exert further downward pressure on Bitcoin’s price.

Historically, similar movements in the Bitcoin market have been linked to whale activity, where large investors manipulate the market to create favorable entry points for themselves, often at the expense of retail investors. This dynamic could lead to a sell-off in the short term, as smaller traders panic while large investors swoop in for better entries. The analyst warned that the coming days could see heightened volatility, making it a crucial time for market participants to carefully monitor price movements and potential shifts in market sentiment.

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