TLDR: Who was selling Bitcoin in the last months and why? Is this selling pressure still there?
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**Miners were selling their coins:**
* Miners are mining the coins and used to accumulate them
* As the prices declined, then the miners had to sell their stock to cover the operating expenses
* Most of this selling is done
* See data from capriole fund at: [
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**CeFi Crypto Lenders enabled continuous down pressure:**
* The CeFi crypto lenders lent your Bitcoin to crypto hedge funds, which were then shorting Bitcoin. See more details here [
* It wasn’t only shorting from the hedge funds which created the selling pressure. It was the collateral liquidations too. See more details in: [
* But depositors have been withdrawing their coins from crypto lenders, i.e., less coins are remaining for shorting
* And many crypto lenders have declared bankruptcy.
* This means less and less sell pressure from the crypto lenders
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**CeFi CEX exchanges enabled continuous selling pressure:**
* The CEX exchanges also lent your #Bitcoin to crypto hedge funds, which were shorting.
* The Bitcoin assets on central exchanges have been continuously declining. See this chart from CryptoQuant [
* As there are less assets on CEXs, then there is less shorting pressure
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**How did Bitcoin shorting earned profits for the hedge funds / trading companies?**
That’s how:
1. You borrow when you have SELL signal for BTC
2. You invest then proceeds into the DeFi Yield Farming
3. When there is BUY signal for BTC, then you exit Yield Farming
4. You buy back the BTC at the lower price (optionally adding leverage on this)
5. You pay the lender the principal and interest
6. The difference is yours
7. When your BUY/SELL signals were correct in 65% of cases, then this resulted in a nice profit
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Miners selling Bitcoin is nothing special; they do this to cover their operating expenses.
But continuous selling pressure from the CeFi lenders and CEX exchanges was **new in the 4th cycle of Bitcoin** (it did not exist on this scale before). This selling pressure was enabled only because the depositors kept their coins in the CeFi lenders and CEX exchanges. One can only imagine how the 4th cycle would have developed without this market structure.
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**Summary**
* This continuous selling pressure emerged because of the market structure (CeFi Crypto Lenders and CEX Exchanges lending out your Bitcoin for shorting, often without depositors knowing this)
* The markets have absorbed this selling pressure in the last months.
* The market structure is changing – CeFI lenders have less and less business, and CEX exchanges have fewer coins in cold and hot wallets
* **Changed market structure results in less selling pressure.**
If I sold now I’d be down 70%. I either lose it all or thank myself in 10 years.
If I lose it all, love goes on.
If it goes up 20x I’m into early retirement.
I’m willing to take that bet and ride it out.
Anyone selling their BTC at this level is a fool. We are down around 75% from ATH…we’ve been in this place numerous times before..these are times you accumulate. Buy when there’s fear and despair.
The feds basically admitted 2023 will be recession year so I think we still have room to go quite a bit lower but who knows.
People that say selling at a loss is stupid don’t realize that if you sell 1 btc now at 16k you can buy 2 btc at 8k.
But ofcourse we are talking trading and it’s really difficult to predict where prices will go at the moment. And for sure from an investor perspective it would make more sense to accumulate than to sell now.
Still “diamond hands” it’s not really smart advice imo. Capital preservation is also important
There’s no way I’ll be selling BTC anytime soon.
It’s simply crazy selling at this time, the bear cycle is a smart time to buy. I only DCA even with some low caps like ENS, ORE, and CVP with growth potentials just so I get well positioned for the next bull run
There’s no way I’m selling my BTC when I bought it at $47k. I’d rather lose it all, than lose some just by following with the herd. I’m still looking at getting more, and get a better position while I stake PGEN and wait for future raises on Polygen.
I have no plans of selling my BTC right now, unless I’ve bought BTC last 2013. I’d rather have it kept on a hard wallet and wait for the rally to begin again, maybe DCA some, and then look for DEXes like AshSwap to make more passive income before the bull market prompts again.
Definitely not me. I think there’s no better time to buy than now, especially for the long term. I’m also consolidating on my LINK, DIA, and TRB bags. I think the forthcoming rally will be massive.
Short answer: Nearly everyone with paper hands and leverage 🙂