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Crypto Plunges as Whales Trigger Four-Year Cycle Sell-off
21 Nov
Summary
- Whales have sold over $20 billion in crypto since September.
- Crypto faces selling pressure linked to a perceived four-year cycle.
- Stock market volatility contrasts with crypto's internal sell-off.
Cryptocurrencies are currently undergoing a substantial sell-off, largely driven by significant trading activity from major holders, often referred to as "whales." These large investors have reportedly divested over $20 billion worth of crypto assets since September, contributing to a sharp decline in market prices.
The prevailing narrative suggests this selling is tied to a perceived four-year cycle within the cryptocurrency market. While analysts like James Butterfill from CoinShares acknowledge this pattern, they emphasize that its fundamental validity is debatable, yet its self-fulfilling nature has led to considerable market impact.
This situation creates a stark contrast with the performance of traditional stock markets. Equities have recently surged on positive AI developments, particularly from companies like Nvidia. However, concerns over high AI valuations and uncertainty regarding Federal Reserve interest rate decisions have introduced volatility, further emphasizing the distinct pressures affecting the crypto space.
