Crypto Market Mirrors Early 2000s Stock Dynamics: Analyst Insights

Crypto Market Dynamics Echo Early 2000s Stock Trends

According to analyst Jordi Visser, significant players in the cryptocurrency market, such as whales and long-term holders, are consistently selling off their assets. This constant sell-side pressure is keeping crypto prices low, reminiscent of the aftermath of the 2000s dot-com stock market crash. During that period, stock prices fell by as much as 80%, followed by a lengthy consolidation phase.

Visser noted that, like tech venture capitalists during the dot-com bust, current crypto investors are eager to liquidate their holdings, often selling during price rallies. "This is evident in Solana, Ethereum, altcoins, and Bitcoin," he remarked.

While Visser does not predict a 16-year recovery for the crypto market, he uses the 2000s scenario to illustrate the current selling pressures. He suggests that this consolidation phase may conclude within a year.

Bitcoin's Price Outlook

Amidst fears of a bear market, Bitcoin prices are showing signs of stabilizing around $100,000. Some analysts anticipate a potential drop to $92,000 if selling pressures continue, while others see a bottoming phase.

CryptoQuant analyst Julio Moreno highlighted that increased selling by long-term holders suppresses prices if market demand cannot absorb the supply. "Since October, the selling has intensified, and demand is insufficient to sustain higher prices," Moreno stated.