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Bitcoin Treasury Holdings Could Spark Next Bear Market, Analyst Warns
- Analyst DonAlt warns that the increasing Bitcoin holdings by public and private firms could lead to selling pressure post the current bull cycle.
- BitcoinTreasuries data shows over 1.11 million BTC controlled by institutional and corporate holders, valued at $117 billion.
- DonAlt suggests that treasury holdings could contribute to a severe bear market as seen in past cycles, potentially causing a 70% to 80% drawdown.
- Institutional buyers have supported the market uptrend, but a reversal could be triggered by mass liquidation or profit-taking.
- Despite long-term concerns, DonAlt remains bullish in the short term, noting a possible correction to $95,000 or $90,000 if Bitcoin drops below $101,000.
- Breaking the $101,000 support level may signal increased downside momentum.
- A growing market tension arises from institutional adoption driving Bitcoin's growth but posing risks in the next downturn.
- The role of treasury holders is seen as a critical factor in shaping Bitcoin's future bear cycles.
- Concerns over the impact of treasury holdings on market dynamics are prevalent despite current market support from institutions.
- DonAlt's analysis highlights the potential risk posed by treasury holders after the current bullish phase.
- Institutional players could accelerate a market reversal through large-scale selling or profit realization post the peak of the current cycle.
- The market is facing uncertainty regarding the influence of treasury holdings on the future trajectory of Bitcoin's price movements.
- The potential for significant downward price movements is emphasized due to the substantial BTC holdings by institutional and corporate entities.
- Bitcoin's market dynamics could be greatly influenced by the actions of institutional and corporate holders in the upcoming bear market.
- The analysis points towards a dual role for institutional players, providing support during rallies but potentially intensifying market downturns during corrections.
- Anxieties regarding the strength of future bear markets are fueled by the sizable Bitcoin holdings amassed by institutional and corporate entities.
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