According to analyst Jordi Visser, crypto whales and long-term holders are choosing to cash out and exit the market, creating sustained selling pressure that suppresses cryptocurrency prices. This situation is reminiscent of the stock market performance following the burst of the internet bubble in the 2000s.

Visser believes that the current price performance of the cryptocurrency market is quite similar to the stock market trends after the internet bubble burst in the 2000s, when the stock market saw a maximum decline of 80% and then underwent 16 years of consolidation before returning to previous highs.

Visser stated that this means venture capitalists investing in the tech industry during the crisis, due to lock-up period restrictions, had to hold these assets for a long time. Once the lock-up expired, they were eager to sell off their assets. He added:

Visser clarified that cryptocurrency prices will not take 16 years to rebound as they did back then; he is merely using the post-2000 internet bubble scenario to illustrate the current market mechanism and indicated that cryptocurrencies are nearing the end of this consolidation cycle, which may take up to another year.

This analysis comes amid concerns about a potential collapse of cryptocurrencies and Bitcoin, leading several analysts and investment institutions to downgrade their most optimistic price forecasts.

Some analysts believe that Bitcoin prices are showing signs of bottoming out, but others worry that if selling pressure continues to increase, it may further decline.

According to CryptoQuant analyst Julio Moreno, whales and long-term holders typically cash out at historical highs, and the act of whales selling itself is not the problem.

Only when new demand cannot absorb the Bitcoin supply that is being heavily sold into the market does the selling pressure from whales and long-term holders truly suppress asset prices.

Moreno stated, "Since October, the selling behavior of long-term holders has increased; this is not new, but demand is shrinking and cannot absorb the supply released by long-term holders at higher prices."

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Original article: “Analyst says the current Bitcoin (BTC) and crypto market sell-off is reminiscent of the post-2000 internet bubble crash”

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