Bitcoin Price: Bitwise CEO Predicts Selling Halts at $130K Threshold

The Bitcoin price continues to be a major topic of discussion among investors and market analysts. A compelling prediction from a prominent figure in the crypto space suggests a significant shift in holder behavior could be imminent as Bitcoin reaches higher levels. This insight offers a potential glimpse into the future dynamics of the crypto market.

Bitwise CEO’s Bold Bitcoin Prediction

Bitwise CEO, Hunter Horsley, recently shared a noteworthy Bitcoin prediction. He believes that once the price of Bitcoin surpasses the $130,000 to $150,000 range, the pressure to sell will effectively disappear. Horsley stated on X that beyond this point, he doesn’t expect people to sell their Bitcoin holdings.

This perspective aligns somewhat with other figures in the industry. Galaxy Digital founder Mike Novogratz has also suggested that a price range around $130,000 is achievable this year, citing factors like strong institutional investment and increasing demand for digital assets.

Why Would Selling Stop Above $130K?

According to Hunter Horsley, the current selling pressure primarily comes from long-term holders who acquired Bitcoin at significantly lower prices. These early investors are taking profits as the Bitcoin price hovers around the psychologically important $100,000 mark and its recent all-time highs.

Data from platforms like Bitbo shows that the average long-term holder (holding over 155 days) is sitting on substantial gains, with an average purchase price far below current levels. Short-term holders, in contrast, have much smaller profit margins.

Horsley’s theory is that once Bitcoin breaks decisively into new territory well above $100,000, this wave of selling from early entrants will ‘peter off’. Onchain analysis firm Glassnode had also previously noted an expected increase in selling from older investors as Bitcoin approached the $100,000 level.

Finding Liquidity Without Selling

Looking ahead, Hunter Horsley suggests that Bitcoin holders will find alternative ways to access liquidity as the price increases. Instead of selling their assets outright, they will increasingly turn to borrowing against their Bitcoin holdings. As the lending ecosystem around crypto matures, this option becomes more viable for large holders needing funds without wanting to divest their position.

This behavior shift would further reduce the effective supply of Bitcoin available on the market, adding to upward price pressure. If holders can borrow against their assets, there is less incentive to sell, especially if they anticipate continued price appreciation.

Tightening Supply in the Crypto Market

The narrative of tightening Bitcoin supply is a recurring theme among market observers. Reports from OTC (over-the-counter) desks indicate reduced availability for large trades. Michael Saylor of MicroStrategy frequently highlights the supply dynamics, noting that the amount of Bitcoin mined daily (around 450 BTC) is relatively small compared to potential demand.

Saylor emphasizes that if the daily supply from miners is absorbed by buyers, the price must increase. At current price levels, he argues, it takes a relatively modest amount of capital ($50 million based on his estimate of daily mined BTC value) to significantly influence the market dynamic.

The combination of reduced selling from long-term holders, increased use of borrowing for liquidity, and limited new supply from mining creates a compelling case for potential supply-side constraints that could propel the Bitcoin price higher, potentially validating the Bitcoin prediction made by the Bitwise CEO regarding selling behavior above $130K.

Conclusion: A Potential Shift in Holder Behavior

The Bitcoin prediction from Hunter Horsley suggests a significant behavioral change among holders as the asset reaches new price thresholds. The idea that selling pressure from early investors will diminish above $130K, coupled with the growing ability to borrow against holdings, paints a picture of increasing supply scarcity in the crypto market. This dynamic, if it plays out as predicted by the Bitwise CEO and others, could have profound implications for the future trajectory of the Bitcoin price.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.