Large bitcoin holders appear to be selling their tokens, threatening to push the cryptocurrency deeper into the red, according to Citigroup. “On-chain data indicates a gradual decline in Bitcoin ‘whales’ (addresses holding large amounts of Bitcoin), while smaller ‘retail’ wallets have increased,” Citi analyst Alex Saunders said in a note to clients on Tuesday. “Some large, long-term holders may have turned to sellers.” Bitcoin plunged more than 6% on Tuesday, briefly falling below a critical $100,000 support level for the first time since late June, as investor sentiment toward cryptocurrencies and AI-related stocks deteriorated on concerns that risky assets were overvalued. The recent price action marks the continuation of Bitcoin’s downward trend over the past few weeks. Last month, the token’s historic October seasonal tailwinds failed to materialize for the first time since 2018, largely due to a surge in U.S.-China trade tensions as well as cascading liquidations of highly leveraged digital asset positions mid-month. Bitcoin was last trading up 3.2% at $103,788.13. The leading cryptocurrency is down 6% over the past week.
