The issue of Bitcoin being transferred from experienced investors, referred to as “OGs,” to less knowledgeable holders is raising concerns about deeper market dips. Peter Schiff asserts that the uncertainty among these newer investors could lead to significant sell-offs when market turbulence arises.

He describes Bitcoin as now having its ‘IPO moment,’ suggesting sufficient market liquidity allows long-term holders to cash out. Schiff commented on Twitter, “This much Bitcoin moving from strong to weak hands not only increases the float, but also means future selloffs will be larger.”

News Image Source: Peter Schiff

In October, long-term holders reportedly offloaded over 400,000 BTC, creating substantial selling pressure that drove Bitcoin’s price below $85,000. The slowing cryptocurrency market has led to differing opinions among analysts regarding the future trajectory, whether it’s a return to bullish trends or the onset of another bear market.

High-profile Cash Outs

Owen Gunden, an original long-term Bitcoin stakeholder, recently sold his entire Bitcoin holding of 11,000 BTC for about $1.3 billion. Moreover, Robert Kiyosaki, best known for his book “Rich Dad, Poor Dad,” disclosed that he sold all of his BTC, roughly valued at $2.25 million. He recognized that his initial purchase price was around $6,000 but sold when Bitcoin reached the $90,000 mark. Kiyosaki plans to reinvest his earnings into businesses generating income.

“I remain very bullish and optimistic about Bitcoin and will start collecting more as my cash flow improves,” Kiyosaki stated.

The prevailing selling pressure exerted by seasoned holders and liquidation surges in cryptocurrency derivatives are significant contributors to the current market situation, according to analysts at Bitfinex. They note that despite short-term volatility, Bitcoin’s core fundamentals continue to attract institutional investors who drive demand.

Retail investors, conversely, may likely sell their Bitcoin at the initial signs of a downturn, thus potentially leading to a projected 70% price drop in the next bear market, as explained by Vineet Budki, CEO of Sigma Capital.