- Top crypto giants like Vitalik Buterin, Druk Holdings, BlackRock, and many others are still selling.
- Top analysts expect the bottom to be much further than current levels.
- Historical charts indicate that the crash isn’t over yet.
Are You Becoming Exit Liquidity?
Crypto markets have fallen 50% from their highs, meaning they have lost all the gains made from November 2024 to Jan 2026. Put simply, that’s the entire gain made after Donald Trump won the US Presidential Elections.
Naturally, such a large fall will attract bottom fishers, including the large and the seasoned ones. However, it is essential to understand that the markets have not yet stabilized, and any misadventure at this point will rob you of any cash that you might have.
Deep Crypto Pockets are Still Selling
We have presented some top bag holders that are still selling to help you understand that the bottom is not made yet.
Several top crypto holders, including Vitalik Buterin, BlackRock, treasuries, old whales, and even new investors, have not stopped selling. Instead, they are selling without needing funds, meaning they are just shorting the markets (selling high now and will buy low later).
Vitalik Buterin
Vitalik Buterin, the co-founder of Ethereum, has been selling ETH in millions. Here’s an Arkham Intelligence report of the same. Till now, it is estimated that he has sold nearly 16,000 ETH.
Although his selling is being justified as for funding personal projects, the timing of the selling comes into question.
Druk Holdings (Bhutan Government)
Druk Holdings, the largest government Bitcoin holder after the USA, China, and Colombia, has been selling between 100 and 200 Bitcoins every day over the last two weeks.
Arkham reported this transaction, where users can clearly see two sales of 184 Bitcoins and 100 Bitcoins in two tranches.
Exchange Traded Funds
All Bitcoin ETFs have been selling in high numbers as users redeem their crypto ETFs. Here’s a snapshot of US Bitcoin ETFs since the last 10 days.
Top Buyers are Still Waiting to Buy
Strategy, one of the largest Bitcoin holders and the largest Bitcoin treasury, has been sitting mostly idle or purchasing small tranches.
Strategy and Saylor have been the biggest Bitcoin buyers when markets hit a rough patch. In the year 2024, they deployed capital to acquire 100,000 Bitcoins.
When questioned about his solvency, he said Bitcoin needs to be at $8,000 for several years to liquidate his holdings.
What to do Instead?
Crypto valuations are attractive in the current markets, and it seems foolish to miss an opportunity.
However, this is not the time to go all in. It’s time to make systematic investments. Investing in small tranches at this stage helps users avoid risk while acquiring crypto steadily.
Here’s a full guide on Buying the Dip Systematically.
How to Identify a Market Bottom?
With more than 10 years of investing experience, a market bottom cannot be identified in the present. Bottoms are always identified in retrospect.
The thumb rule of identifying bottoms is that the market must recover at least 20% from a certain level with a high RSI to confirm a market bottom. Further, there should be no uncertainty with regard to fundamental factors like interest rate decisions or elections.
Disclaimer: BFM Times acts as a source of information for knowledge purposes and does not claim to be a financial advisor. Kindly consult your financial advisor before investing.
