Bitcoin Selling Pressure Rises as Altseason Possibilities Emerge

• Reactivation of inactive Bitcoin addresses introduces new selling supply, weakening momentum.

• Whale accumulation persists despite retail selling from smaller wallets.

• Bitcoin dominance nearing a breakdown could trigger capital rotation into altcoins, with 58% support at risk per historical patterns.

Bitcoin selling pressure mounts as altseason speculation builds with Fed QE signals. Discover how dormant wallet moves and dominance shifts could spark the next altcoin rally—stay informed on crypto trends today.

What is Causing the Current Bitcoin Selling Pressure?

Bitcoin selling pressure stems primarily from the reactivation of long-dormant wallets, with approximately 62,000 BTC transferred from inactive addresses since mid-October, as reported by on-chain analytics platform Glassnode. This influx of supply has created resistance levels that hinder price advances, echoing patterns from earlier cycles like January 2024 when over 400,000 BTC exited long-term storage and slowed the rally. Without robust new demand, analysts warn that upward movements will face ongoing challenges from this diminished pool of dormant coins.

How is Altseason Speculation Building Amid Fed Policy Changes?

The altseason speculation is gaining traction due to anticipated shifts in Federal Reserve policy, particularly the potential end of quantitative tightening and a pivot to quantitative easing at the upcoming FOMC meeting. Crypto analyst Crypto Rover has drawn parallels to the 2019-2021 cycle, where similar liquidity injections fueled a massive bull run led by Ethereum and other altcoins. Prediction markets like Kalshi and Polymarket indicate strong trader bets on 25-basis-point rate cuts in October and December 2025, with the Fed’s balance sheet at 21.6% of GDP—its lowest since 2020—signaling an imminent re-expansion. This could inject fresh liquidity, rotating capital from Bitcoin to riskier altcoins and mirroring historical surges in 2017 and 2021.

Frequently Asked Questions

What does the reactivation of dormant Bitcoin wallets mean for market dynamics?

The movement of 62,000 BTC from long-inactive addresses since mid-October represents a surge in available supply, increasing selling pressure and limiting Bitcoin’s bullish momentum. Glassnode data highlights this as a potential end to supportive trends in the current cycle, similar to the January 2024 event that triggered a rally slowdown, urging traders to monitor demand levels closely.

Is Bitcoin dominance breakdown a reliable signal for altseason onset?

Yes, a breakdown below the 58% Bitcoin dominance level has historically preceded explosive altcoin rallies, as seen in prior cycles where dominance fell to 40% within two months. Analyst CrypFlow notes that current patterns suggest compression before a breakout, potentially directing capital flows into mid- and small-cap assets if the multi-year support line gives way.

Key Takeaways

• Supply Surge from Dormant Wallets: Over 62,000 BTC activated since mid-October adds resistance, per Glassnode, potentially capping short-term gains without new inflows.
• Whale vs. Retail Behavior: While smaller holders (0.1-10 BTC) net sell, large whales accumulate, indicating long-term confidence amid October’s holdings expansion.
• Fed Policy Pivot Insight: Expected QT end and QE restart, plus two rate cuts by year-end, could fuel altseason—traders bet heavily on this via Kalshi and Polymarket.

Conclusion

The crypto landscape shows clear signs of Bitcoin selling pressure from reactivated dormant wallets, contrasting with rising altseason speculation driven by Federal Reserve liquidity expectations and weakening Bitcoin dominance. As historical patterns suggest a possible capital rotation, market participants should prepare for volatility, with institutional accumulation pointing to sustained long-term potential. Stay vigilant for FOMC outcomes, as they could catalyze the next phase of broader market growth.

The crypto market is experiencing a notable split between Bitcoin and altcoins, with Bitcoin facing heightened selling pressure from long-dormant wallet activations while altseason anticipation builds. On-chain data from Glassnode reveals that around 62,000 BTC has shifted from inactive addresses since mid-October, boosting supply and erecting barriers to further price gains. This trend mirrors past cycles, such as the January 2024 period when substantial dormant coin movements led to a temporary halt in upward momentum.

Glassnode analysts emphasize that the contracting reservoir of untouched Bitcoin could mark the conclusion of a key bullish driver in this market phase. They state, “Without strong new demand, any upward movement in prices will encounter further resistance.” In earlier bull runs, such supply unlocks often aligned with fading enthusiasm, prompting traders to reassess entry points carefully.

Despite the selling from mid-sized wallets holding 0.1 to 10 BTC, which have remained net sellers, larger whale entities are actively building positions. Throughout October, these high-volume holders have increased their Bitcoin reserves, reflecting a strategy likely adopted by institutions and affluent investors betting on enduring value over immediate fluctuations.

Shifting focus to altcoins, excitement is mounting ahead of pivotal macroeconomic developments. The Federal Open Market Committee’s next gathering is poised to potentially conclude quantitative tightening and initiate quantitative easing, a move that historically propels risk assets like cryptocurrencies. Crypto Rover, a prominent market commentator, likens the present environment to the 2019-2021 era, when the Fed’s balance sheet expansion ignited a prolonged rally dominated by Ethereum and select altcoins.

Market sentiment on platforms such as Kalshi and Polymarket heavily favors a 25-basis-point interest rate cut at the October meeting, followed by another in December, culminating in two reductions by year’s end. The Federal Reserve’s assets now constitute just 21.6% of nominal GDP, the slimmest margin since 2020, underscoring a likely policy reversal toward expansionary measures that could flood markets with liquidity.

Technically, indicators bolster the case for an impending altseason. Bitcoin dominance, measuring Bitcoin’s share of the overall cryptocurrency market cap, is testing a long-term ascending support line around 58%. A breach here would signal a departure from Bitcoin-led gains, ushering in altcoin dominance as funds redistribute.

CrypFlow, an analyst tracking these metrics, observes that delays in the dominance decline have occurred, but once the 58% threshold yields, historical precedents show a sharp drop to 40% within two months, defining peak altseason periods. Such shifts preceded the 2017 and 2021 booms, where investments poured into smaller-cap tokens, driving outsized returns.

Additionally, the aggregate altcoin market capitalization exhibits fractal formations akin to those preceding past explosive phases, with technicians interpreting the current consolidation as a prelude to volatility expansion and upward breaks.

Yet, cautionary voices persist. Analyst Ali Martinez cautions that Bitcoin may have already crested its bull cycle peak. Drawing from cycle timings, he calculates that Bitcoin typically tops 1,064 days post-bear market lows—a milestone reached since the November 2022 trough, coinciding with the recent all-time high near $126,220.

Martinez advises readiness for a possible correction phase before renewed advances, as cyclical patterns suggest a consolidation or pullback could follow the current juncture. This perspective tempers the altseason hype, reminding investors of the market’s inherent unpredictability.

In summary, dormant Bitcoin distributions and tempered sentiment point to near-term sideways action, but liquidity infusions from Fed actions and eroding dominance may lay groundwork for an altcoin resurgence. Observers should track on-chain flows, policy announcements, and technical thresholds to navigate this evolving dynamic effectively.