Bitcoin Consolidates As Early Holders Exit And Broader Market Accumulates

TLDR

• Bitcoin’s price is consolidating as dormant coins steadily re-enter the market.
• Analyst Jordi Visser compares Bitcoin’s current phase to a stock’s IPO stage.
• New investors are buying on dips, signaling faith in Bitcoin’s long-term value.
• Network hashrate hits new highs while ETF approvals support strong fundamentals

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Bitcoin’s price action has entered a consolidation phase that some market participants are struggling to explain. However, macro analyst Jordi Visser suggests the answer lies in Bitcoin’s current transition stage. He believes the asset is undergoing an “unofficial” Initial Coin Offering (ICO), similar to a traditional stock’s Initial Public Offering (IPO), where early holders gradually offload their positions and new participants step in.

Early Holders Are Selling, New Investors Are Accumulating

According to Visser, Bitcoin is seeing a quiet but steady movement of old, dormant coins. These coins are not being sold in panic but are entering the market slowly. This pattern reflects early adopters cashing out after years of holding the asset.

At the same time, newer investors are accumulating Bitcoin during price dips. These buyers tend to hold for the long term and have different motivations from early holders. “The early believers are passing the torch to long-term holders who bought at higher prices and have different motivations,” Visser stated on a podcast hosted by Anthony Pompliano.

This transition mirrors what often happens after a company goes public. Founders and early investors sell part of their stake, while institutional investors and the broader public take over. The result is a shift from concentrated ownership to broader distribution across a larger number of holders.

Price Movement Reflects a Post-IPO Pattern

Bitcoin’s price has been moving sideways despite strength in broader markets. Over the past week, the price has traded within a narrow range between $106,786 and $115,957. This behavior has caused frustration among retail investors and traders who expected a stronger price response to positive market developments.

Visser compared this to the price pattern seen in newly listed stocks after their IPO lock-up periods expire. In traditional markets, when early investors are allowed to sell, the stock often enters a phase of consolidation. Prices hold steady instead of rallying, even if the fundamentals remain strong. “The stock doesn’t crash. It consolidates. Early investors sell. New long-term holders accumulate,” he said.

This behavior has also been noted in Bitcoin, where selling is steady but met with buying interest from those looking to build positions. It is not a bear market scenario, as prices are not collapsing. Instead, the asset is holding its range despite weaker sentiment.

Fundamentals Remain Strong Despite Market Sentiment

While the Crypto Fear & Greed Index has returned fear readings for several days, some data points suggest that belief in Bitcoin’s long-term value remains. One example is the continued approval of Bitcoin exchange-traded funds (ETFs), which signals institutional interest.

Additionally, Bitcoin’s network hashrate continues to hit new highs. A higher hashrate suggests miners remain confident in the network’s security and future profitability. Stablecoin usage has also increased, showing strong engagement in the wider digital asset ecosystem.

Visser noted, “In a bear market, there are no buyers. Price collapses because everyone wants out and nobody wants in. But look at what’s actually happening: Bitcoin is consolidating, not collapsing.”

Market May Remain in Consolidation for Months

Visser expects this unofficial ICO phase to continue for several more months. He stated that, historically, similar IPO phases last between six and eighteen months. Bitcoin, being a faster-moving asset, may complete this process quicker, but is still around the six-month point.

Once this transition ends, the price is expected to stabilize further as ownership becomes more evenly distributed. With early holders exiting and new investors stepping in, Bitcoin’s ownership structure may shift toward long-term stability. That could lead to reduced volatility in the future.

Visser concluded that this process will not have a clear signal or moment when it ends. “It will just start because the good news is already present,” he said.

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