The transfer of Bitcoin (BTC) from seasoned holders, known as “OGs,” to less experienced investors, often referred to as “weak hands,” is expected to magnify market declines, warns Peter Schiff, a prominent gold investor and economist.

Schiff commented on Twitter, referring to Bitcoin’s current state as its “IPO moment,” suggesting that the market now has enough liquidity for long-term holders to capitalize by cashing out their investments.

“This much Bitcoin moving from strong to weak hands not only increases the float, but also means future selloffs will be bigger,” he added.

In October, whales and longtime Bitcoin holders sold off over 400,000 BTC, putting substantial selling pressure on the market, causing the price of BTC to plummet below $85,000.

The ongoing downturn in the crypto sector has left many analysts and investors split on the market’s trajectory—whether a bullish trend will resume soon or if we are witnessing the onset of another bear market.

In a noteworthy exit, Owen Gunden, a pioneering long-term Bitcoin investor, sold his entire BTC holding, which was approximately 11,000 BTC worth around $1.3 billion.

Additionally, Robert Kiyosaki, renowned for his book “Rich Dad, Poor Dad,” announced he had sold all his BTC, initially acquired at around $6,000 per coin, now valued at approximately $2.25 million. He plans to reinvest his gains into income-generating ventures while remaining optimistic about Bitcoin’s potential.

“I am still very bullish and optimistic on Bitcoin and will begin acquiring more with my positive cash flow,” Kiyosaki stated.

Experts at Bitfinex attribute the current short-term downturn to significant selling activity by long-term holders and liquidations in the derivatives market. They emphasize that Bitcoin’s fundamentals remain strong, potentially attracting more institutional investments in the future. However, retail investors may react nervously and sell at the first signs of trouble, contributing to projected steep declines in the upcoming market.