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Experts say Bitcoin's price upward movement has been slower than in previous cycles, citing the intervention of early investors, who are also known as OG whales. According to on-chain analyst Willy Woo, much of the Bitcoin supply is held by long-term holders who purchased the coins around 2011, when a single unit was trading below $10.
These early investors are already holding on to large unrealized profits. Any large-scale selling by this group would need to be met with new capital inflows to avoid downward pressure on prices.
Crypto analyst Woo clarified that the difference in the cost basis, the amount of supply carried, and the level at which supply is sold will result in fresh capital needed to prop up the market. This dynamic is causing resistance to fast-paced price appreciation and facilitating a more sustainable, slower rise in Bitcoin during the current cycle.
Recent blockchain data points to a significant example of such a trend: one of these early Bitcoin owners converted a substantial amount into Ethereum. Lookonchain reported that the whale, who originally received 100,784 BTC, recently sold approximately 22,769 BTC, valued at around $2.59 billion, via Hyperliquid. The funds were spent to purchase 472,920 ETH ($2.22 billion) and launch a 135,265 ETH long position worth $577 million.
These transactions suggest a substantial rotation of capital from Bitcoin into Ethereum, signaling aggressive profit-taking on BTC while betting on Ethereum’s short-term upside. Analysts note that massive sell-offs by early adopters can consume liquidity and hinder the growth of Bitcoin as a whole, affecting the speed at which the market would react to purchase demand.
Other factors contributing to Bitcoin's slower uptrend include structural weaknesses in the market, especially during the weekends. CryptoQuant argues that reducing liquidity over the weekend is normal due to lower volumes on both spot and derivative exchanges, which raises order books to the risk of manipulation by big players.
Data shows that BTC exchange reserves often increase before weekend dips, coinciding with higher sell pressure. Too many long positions on derivatives can result in a wave of liquidations, and other metrics such as SOPR show that short-term holders are capitalizing on profits. Collectively, these will cause what CryptoQuant refers to as a liquidity trap, which means that significant investors will be able to manipulate the thin markets to their advantage and cause a spike in thousands of prices.
Market analysts observe that the combination of early whale actions, structural flaws, and weekend volatility is playing a role in shaping the exceptionally low rate of the current Bitcoin uptrend. Analysts are still observing these variables as the market experiences profit-taking and rotation of capital between major cryptocurrencies.
Also Read: Bitcoin News Today: Will $112K Bitcoin Support Hold Amid Bearish Trend?
