Why Is Bitcoin Crawling This Cycle? Analyst Reveals the Hidden Factors

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Bitcoin’s sluggish pace these days feels like it’s been hit by a slow-moving train. The market’s not getting the usual turbo boost that we’ve all come to expect. Experts say it’s all the fault of the original whales-those early investors who are still holding a boatload of Bitcoin, like hoarders who can’t bear to part with their stash of rare baseball cards.

Willy Woo, a guy who’s about as plugged into the Bitcoin scene as anyone, argues that these OG whales are like the overprotective grandparents of the Bitcoin world. They accumulated a huge chunk back when Bitcoin was trading at just $10. But now, these long-term holders are sitting on gains so large, they could buy a small island-or 10. Every time they sell, they’re basically telling the market, “Hey, we’re sitting on this massive treasure chest, and if you want us to let go of it, you’ll need to cough up over $110,000 for each Bitcoin!” 🤑

Bitcoin’s Slow As Molasses Climb

In a recent post, Willy Woo broke it down in classic Willy Woo fashion: the supply of BTC is basically concentrated in the hands of a few lucky (or savvy) folks who got in early. And now that they’re sitting on some pretty fat stacks, every time they sell, the market needs a whole lot of fresh new money to absorb that. It’s like trying to fill a bathtub with a garden hose while your dog keeps jumping in to drink the water.

These old-school Bitcoin whales are holding on like they’re grasping their last cookie at a family gathering. And when they sell, the market has to scramble to balance out all the selling pressure, which makes Bitcoin’s climb feel more like a slow crawl than a skyrocket 🚀.

“This differential in cost basis, the supply they hold, and their rate of selling has profound impacts on how much new capital that needs to come in to lift price. You can look at this as BTC going through growing pains until these 10,000x gain investors are absorbed.”

One prime example of this whale activity is a Bitcoin OG who’s recently made a big splash by swapping some BTC for Ethereum. A whale who first received 100,784 BTC back in the day (worth $642 million back then and over $11.4 billion today) is now pulling a fast one. This whale is transferring Bitcoin into Ethereum like they’re flipping a pancake.

They deposited around 22,769 BTC, worth about $2.59 billion, to Hyperliquid for sale, and then promptly used that money to buy up 472,920 ETH. That’s $2.22 billion of Ethereum just flying off the shelves. Plus, they’ve opened a long position worth another $577 million. Talk about making it rain. 🌧️

The sheer scale of this transaction shows that this whale is not just in it for the long haul with Bitcoin. They’re betting big on Ethereum, and they’re doing it fast. 😎

But it’s not just the whales that are making things tricky for Bitcoin. The market’s also facing some short-term volatility that makes things wobble, especially on weekends.

Structural Weakness

Bitcoin’s drop this past weekend wasn’t just a coincidence. It’s a result of some structural issues within the market. Weekends tend to be a bit like a ghost town when it comes to trading-liquidity dries up, and trading volumes shrink. This leaves the order books vulnerable to manipulation by the big dogs who can move prices like they’re flipping a light switch.

On-chain data shows that before these weekend dips, the reserves of BTC exchanges start to rise. This signals that sell pressure is building up. Meanwhile, there’s often a lot of long positioning in the derivatives market, which can cause a chain reaction when things go south. It’s like a rollercoaster that you didn’t sign up for.

At the same time, short-term holders are taking profits like there’s no tomorrow, adding fuel to the fire. CryptoQuant calls this a “liquidity trap,” where whales can trigger stop-loss clusters and force sharp, heart-pounding price moves. Hold on tight, folks, because it’s going to be a bumpy ride. 🎢

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2025-08-25 13:03