Multiple executives in the cryptocurrency industry believe that the recent market downturn may be related to outflows from cryptocurrency ETFs, long-term whale sell-offs, and escalating geopolitical tensions. On Sunday, Bitcoin briefly fell to nearly $93,000.
Bitcoin touched a new yearly low of $93,029 on Sunday. The overall market capitalization also saw a decline over the past seven days, dropping from $3.7 trillion on November 11 to $3.2 trillion on Monday, according to data from CoinGecko.
Ryan McMillin, Chief Investment Officer of Australian crypto investment management firm Merkle Tree Capital, stated in an interview with Cointelegraph that no single event has caused this round of market decline.
McMillin pointed out that on-chain data shows long-term holders "finally starting to cash out after an extraordinary surge," which is one reason, while "good fundamentals and liquidity tailwinds have also provided space for further price declines."
"Overall, you will find that old coins are being allocated to a softer buying environment in a macro context that is much less forgiving than six months ago," McMillin added.
Matt Poblocki, General Manager of Binance Australia and New Zealand, noted that this volatility reminds us that cryptocurrencies remain a mature asset class influenced by global macroeconomic and political events.
Meanwhile, Holger Arians, CEO of Banxa, stated that the market is operating at a very heated state relative to the world.
"We are dealing with some unresolved, and in some cases escalating, geopolitical tensions. At the same time, global tech valuations are continuously rising in future expectations. After a year of optimism, a broader risk-averse moment is almost inevitable," he said.
Other crypto executives on the X platform also shared their views. Hunter Horsley, CEO of Bitwise Asset Management, believes that the four-year cycle narrative may be a trigger for this round of correction, as traders worry about downturns occurring every few years, leading them to sell and inadvertently fueling the adjustment.
Tom Lee, Chairman of BitMine at Ether Treasury, believes there is "a significant gap" on the balance sheets of market makers that could trigger liquidations by surrounding sharks.
However, most crypto analysts indicate that the underlying market remains strong.
"This sharp correction is a normal part of the market cycle," Poblocki said.
"ETF flows have slightly weakened in line with broader risk sentiment, but we haven't seen significant redemptions. The big picture hasn't changed—institutional participation remains high, and retail investors have taken a more cautious approach," he added.
Arians stated that as fundamentals move in the right direction, the market correction could reverse, with more regulatory clarity, more real-world use cases, and traditional finance frequently and boldly entering the crypto space.
"Even if prices feel weak, the underlying infrastructure story has never been stronger. Stablecoin trading volume, on-chain activity, developer momentum—all of these are quietly moving in the right direction. The market may feel slow, but the tracks being laid now are preparing for the next cycle," Arians added.
McMillin shares a similar stance with macro analyst and Wall Street veteran Jordi Visser, who believes that old Bitcoin holders are simply selling to new traders ready to take over.
"In previous cycles, with this level of long-term holders selling, we should have seen a 70-80% drop; instead, despite the heavy OG allocation, the price drop has been much smaller because ETFs and other institutional channels are deep enough to absorb a large amount of stock," he said.
Related: Czech National Bank invests $1 million for the first time to test Bitcoin (BTC) against other crypto reserves
Original article: “Crypto Executives Discuss Bitcoin (BTC) Falling Below $94,000, Who's to Blame?”
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