Whales and long-term investors are cashing out, echoing early 2000s market behavior
The ongoing crypto market sell-off is showing striking similarities to the post-2000 dot-com crash, according to analyst Jordi Visser, who compared the current wave of selling to the early internet era’s drawn-out consolidation phase.
Visser noted that much like the dot-com bubble, where technology stocks fell as much as 80% before spending over a decade in recovery, large investors in Bitcoin (BTC) and altcoins are now offloading holdings, preventing prices from reaching a euphoric blow-off top.
“Many stocks were trading below their IPO prices during that time,” Visser explained. “We’re seeing something similar today — venture capital and insider investors are desperate for liquidity, selling into every rally. It’s happening with Solana, Ethereum, and Bitcoin alike.”
Crypto’s long-term consolidation phase
Visser clarified that while crypto’s recovery will not take 16 years like the Nasdaq’s post-crash rebound, the current phase of sideways consolidation could last up to another year. The prolonged selling by early investors and whales has created persistent sell-side pressure, keeping Bitcoin capped below its previous highs despite strong macro catalysts.
The analysis arrives amid rising concern that Bitcoin’s October downturn marked the start of a new mini bear market, forcing several analysts and funds to revise their bullish forecasts. BTC has since struggled to hold above $105,000, and some traders warn of a potential drop toward $92,000 if selling continues.
Whales selling, but demand lags
Data from CryptoQuant shows that long-term holders are offloading their Bitcoin faster than the market can absorb. Analyst Julio Moreno noted, “Since October, long-term holder selling has increased. The issue isn’t the selling itself — it’s that demand is contracting and unable to absorb supply at these higher prices.”
While heavy profit-taking from early holders may be keeping prices subdued, some analysts view this phase as the final stage of accumulation before the next long-term bull cycle begins — much like the rebound that followed the dot-com collapse.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.