Many long-term Bitcoiners are selling up, such as early arbitrage trader Owen Gunden, who shifted the last of his 11,000 Bitcoin to an exchange.
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Long-term Bitcoin holders could be selling their holdings to shift into exchange-traded funds (ETFs) and to diversify their crypto portfolios, says Dr. Martin Hiesboeck, the head of research at cloud-based financial service platform Uphold.
“There are several reasons why OG crypto holders are selling,” Hiesboeck on Sunday. “Number one is to buy them back in the form of ETFs, which offer incredible tax advantages with current rules, especially in the US.”
“The second reason is that they have realized that the real revolution isn’t Bitcoin but Blockchain, which is being used in every industry. There are therefore many other projects that promise greater returns than Bitcoin, which is still lacking a widespread use case.”
Early Bitcoin () arbitrage trader Owen Gunden was among the latest to shift his 11,000 Bitcoin holdings to an exchange, with a final transfer of 3,549 coins on Sunday, to Lookonchain.
Several long-term Bitcoin whales have also and sold off their holdings, including a , which had been inactive for 14 years before it started moving around its massive stash in July.
Bitcoin a more mature asset now
Hiesboeck said (CAGR) has been diminishing, suggesting it’s moving away from being a high-growth asset to use “as a hedge against traditional financial systems failures and fiat.”
Bitcoin’s CAGR over the last four years has been steadily declining and dropped into single digits for the first time in April. As of Nov. 10, it’s around 13%, to Bitbo.
“This maturity is accelerated by events like the launch of spot Bitcoin exchange-traded funds, which bring in large, institutional capital that is generally less volatile than retail-driven speculative flows, thus dampening extreme price swings and contributing to a lower, steadier growth rate,” Hiesboeck said.
“The goal for a maturing asset is for its volatility to also decline, which some sources suggest is happening, to maintain a competitive risk-adjusted return.”
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Macro analyst that Bitcoin is in an initial product offering phase, with original holders rotating out and new traders scooping up the tokens, thereby widening distribution.
Next phase isn’t about Bitcoin versus altcoins
Hiesboeck also argues the is no longer relevant, as the space is ever-evolving, and it would be better to let go of old rivalries and focus on projects “that will change the world and avoid those that will likely fail.”
“We are in an exciting tech space with room for many projects, it’s not a question which football team you support,” he said.
“Do not be alarmed by some OG’s selling parts or all of their holdings. They are just growing out of adolescent maximalism.”
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