$ETH Industry insiders point out that large traders have hoarded a significant amount of Bitcoin, estimated to account for 23% of the total circulating supply of Bitcoin. The implications behind this sell-off could be quite significant, representing a bearish outlook from seasoned players on the future price of Bitcoin. However, the CEO of CryptoQuant stated that Bitcoin demand seems to be stable, not enough to classify the market as bearish.

Analysts at Tagus Capital noted that market sentiment was initially affected by disappointment over the U.S. government's strategic Bitcoin reserves. Concerns about Bitcoin's strategic reserves may have been exaggerated, as the U.S. government may purchase Bitcoin in a manner that does not exceed its budget in the future, while other countries may also accelerate the adoption of Bitcoin as a strategic reserve.