Are Bitcoin Investors Who Bought at $1,000 Price Range Starting to Panick and Sell Their BTC Stash?

Bitcoin and virtual currencies experienced during this year a very hard bear market that damaged their performance. The sentiment in the market remains very negative and virtual currencies could reach new lows in the near future.

According to Michael Moro, CEO of Genesis Global Trading, large investors that entered the market when Bitcoin was close to $1,000 are starting to sell their cryptocurrencies. Genesis Global Trading is a major over-the-counter (OTC) cryptocurrency trading firm that provides institutional investors access to block size liquidity and purchase or sell virtual currencies.

He has also added that Bitcoin investors that purchased the popular virtual currency at the beginning of the year have seen returns close to zero.

“We are seeing the folks who bought in early 2017 sell for the first time today,” he said.

A few hours ago, on November 20, Bitcoin registered new year lows for the second time during the week. In some exchanges such as Kraken or Coinbase, Bitcoin was traded close to $4,170 dollars. However, in some exchanges, Bitcoin’s price was close to $4,400 dollars.

There are some analysts that say that the bear market did not end yet. In the coming weeks or months, we could find the bottom of this bear market.

For example, analysts at Bloomberg suggested that Bitcoin’s price could reach $1,500 dollars before starting a new bull market. This would be equal to a 70% drop from current prices, which would be completely negative for the whole cryptocurrency market.

So those investors that entered the market during the first part of the year are those that are currently selling and generating pressure for Bitcoin to continue falling.

Travis Kling, the founder of the hedge fund Ikiagi, said about Bitcoin Cash (BCH) and its network upgrade:

“I didn’t sleep well last night. There’s a small chance that it’s difficult to estimate, that something really bad could happen related to Bitcoin Cash that could then impact the entire crypto market.”

Bitcoin Cash experienced a network update on November 15, that has affected the market as a whole. Until now, there is no answer about what will happen with Bitcoin Cash and the two networks that split from it.

Due to the negative sentiment that this situation created in the market, some investors, those that bought in early 2017, are expected to sell their holdings fearing that Bitcoin could drop even further.

In order to achieve a similar drop as registered back in 2014, Bitcoin would have to fall under $3,000 dollars, equivalent to an 85% correction. From current prices, Bitcoin would have to drop by more than 32 per cent.

If that happens, Bitcoin would need new investors to enter the market and start to purchase Bitcoin. In the near future, the Intercontinental Exchange (ICE) is expected to launch the Bakkt platform, that would help new institutional investors to enter the market and push Bitcoin price up. The same might happen if the U.S. Securities and Exchange Commission (SEC) approves the first Bitcoin ETF at the beginning of the next year.

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