Here is What is Currently Weighing Most on Bitcoin’s Price Trajectory

Bitcoin has seen notable price corrections since March, primarily due to significant sell-offs by large holders, or whales, along with substantial token unlocks increasing the altcoin supply.

A report by 10x Research suggests these factors have offset any positive momentum from stablecoins and Bitcoin exchange-traded funds (ETFs).

Markus Thielen, the founder of 10x Research, expressed optimism about Bitcoin’s future, linking potential price increases to a rebound in the U.S. economy, ongoing interest rate cuts by the Federal Reserve, and strong corporate earnings.

The report points out that whale activity has heavily influenced Bitcoin’s market dynamics this year, with many large holders moving their assets to exchanges in preparation for sales, particularly as the market approached a peak earlier this year.

Additionally, the pressure from token unlocks has compounded these challenges, with $35 billion worth of tokens entering circulation since March. October alone saw $3.9 billion in unlocks, a sharp increase from the previous month. However, November is expected to see a reduction in unlock activity.

Despite these pressures, inflows from ETFs and stablecoins have provided some market stability, helping to mitigate more severe price drops.