Bitwise Advisor: Bitcoin OG whales continue selling, which may hinder price increases.
TL;DR
Bitwise advisor notes Bitcoin's unfavorable market structure due to OG whales selling and slowing ETF/DAT demand. A sustained return to higher implied volatility is needed for a breakout, but recent weeks have seen volatility drop from 63% to 44%.
Tags
ChainCatcher reports that Bitwise advisor Jeff Park wrote, "The current market structure is fundamentally unfavorable for a substantial price increase in Bitcoin. This is because, on the one hand, Bitcoin OG holders continue to sell, while on the other hand, demand from ETFs and DAT is slowing down. For Bitcoin to break out of its current pattern, it must return to significantly higher implied volatility levels in a sustained manner, especially upward volatility. In November, I stated 'volatility or death,' and shared the first unusual breakout signal at that time, finally seeing volatility begin to rise, rekindling some hope. However, unfortunately, implied volatility has been completely suppressed again in the past two weeks. From a high of 63% in late November, it has now fallen back to 44%."