Old Bitcoin Whales and OTC Traders Fueling BTC Drawdown: CryptoQuant CEO

The New Year turned out bullish for most digital currencies including Bitcoin (BTC) whales and retail investors. The digital currency is up by 2.95% in the past 24 hours to $96,783.31, paring off the drawdown of the past week. Despite this resilience, there are still visible selloffs in the Bitcoin ecosystem. Drawing on this, CryptoQuant Founder Ki Young Ju has shared insight on the source of the latent Bitcoin sell pressure in the market.

Who Is Selling Bitcoin Now?

In what appeared as a conversation with a friend, Ki Young Ju said old whales are responsible for the existing selloffs in the market now. He further noted that these Bitcoin whales conduct their transactions via high OTC volume and exchange deposits. However, the CryptoQuant CEO said these activities will not likely crash the market as it stands.

Since the United States remains the biggest source for the Bitcoin buying pressure, changes in regional interest can impact the market. As Ki Young Ju pointed out, the daily premium on Coinbase Exchange is currently at a 2-year low. This is an indication of lower interest from institutional investors in the region.

For the market to print significant growth, he said this Coinbase Premium needs recovery for the next leg up.

Friend: Who the f*ck is selling #Bitcoin now?

Me: Old whales. High OTC volume and exchange deposits, but they won’t crash the market, imo.

Buying pressure is mainly from U.S. institutions on Coinbase, but daily premium is at a 2-year low. Needs recovery for the next leg up. pic.twitter.com/6VlJvCMFbz

— Ki Young Ju (@ki_young_ju) January 2, 2025

While he gave no indication the timeline for the Coinbase Premium recovery, BTC whales with sustained buying momentum remain in the market.

Where is the Market Heading?

Despite the mixed Bitcoin whales activity, BTC remains the reference point for industry performance. However, many analysts have projected a potential altcoin season this year. Amid the Bitcoin price recovery, altcoins like Binance Coin (BNB), Solana (SOL) and XRP have jumped 5.06%, 7.93% and 3.83% respectively.

XRP even surpassed Tether as the third largest coin, setting the market for a major shift ahead. As a result of the shifting market sentiment, experts believe the Bitcoin dominance may fall in the coming weeks.

Despite the Bitcoin price projections, investors remain cautious ahead of Donald Trump Presidential inauguration. Some analysts including Ki Young Ju believe he might not fulfil his election promises of a strategic BTC reserve due to the complexity around the US Dollar.

How the next few weeks play out might determine whether the market will keep up with the bull cycle picked up since last year.