Is a major player selling Bitcoin and putting pressure on the price?
NEW YORK (February 12) Bitcoin experienced a significant plunge to around $92,000 at the start of the month, which sparked a wider selloff in the crypto market, according to Aaron Dishner, co-founder and lead Instructor at Better Traders.
This price action occurred amidst "tariff fears" and speculation around a potential Bitcoin strategic reserve in the U.S. Yet, prices continue to face downward pressure, trading below the $100,000 level.
Dishner, also known as Moonin Papa, believes that the current drop in Bitcoin's price is due to "unmet... wishes" and that many people see the cryptocurrency market as a "get rich quick scheme." He explained that there has been a lot of hype and anticipation for President Trump to move forward with crypto-related actions but that "it's taking a little bit longer."
Strange outflows
Dishner highlighted an important piece of on-chain data and noted some strange outflows.
"Part of the beauty of blockchain is that it's transparent for the most part. You can track addresses, you can track flows, whether they're going to an exchange or from an exchange," he told Kitco News.
The World Liberty Financial wallets, controlled by the Trumps, had been "accumulating a massive amount of Bitcoin, wrapped Bitcoin, and Ethereum." However, on Sunday, a large amount of these cryptocurrencies were sent to Coinbase. According to Dishner, "Whenever a large wallet is sending funds to an exchange, it's primarily to sell."
He found it strange, considering the Trump family is seen as "pro-crypto." This selling pressure may have influenced the price of Bitcoin in the short term.
Price predictions and trading strategies
While some analysts have predicted Bitcoin will reach $1 million, Dishner takes a more conservative approach, with a personal target of $173,000 by the end of the year.
He stresses the importance of taking profits, as the market is volatile. He notes that it's best to "shave off a little bit" when you see gains because the price is likely to dip, and those profits can be reinvested.
The cryptocurrency market is on a four-year cycle, Dishner added. He believes that this year is a "top year," and that he anticipates a significant drop after the market reaches its peak.
Safe haven demand
While the crypto market stumbled, investors flocked to traditional safe havens such as gold and the U.S. dollar. Gold hit multiple new record highs, breaching $2,900 an ounce.
Dishner pointed out that gold is acting as "a safe haven" because "tariffs are causing a lot of fear and short-term panic for a lot of U.S. investors." He added that the "fear of a shortage" is driving up the price of gold.
KitcoNews
