TLDR
- Bitcoin is experiencing an IPO-like phase as early holders sell their coins to new investors, according to macro analyst Jordi Visser.
- Old coins that have been dormant for years are now being steadily reintroduced into circulation, while new buyers accumulate during price dips.
- The cryptocurrency has traded between $106,786 and $115,957 over the past seven days in a consolidation pattern.
- The Crypto Fear & Greed Index has returned fear ratings since Wednesday despite strong underlying fundamentals for the asset.
- Visser expects the IPO phase to continue for several more months before the distribution process completes across the market.
Bitcoin (BTC) is going through an initial public offering moment as original holders sell their coins to new investors. Macro analyst Jordi Visser notes that this distribution resembles traditional stock market IPOs. The process involves early believers cashing out while fresh capital enters the market.
Early Holders Transfer Bitcoin to New Investors
Visser shared his analysis on entrepreneur Anthony Pompliano’s podcast and through a Substack post on Saturday. He explained that old coins, dormant for years, are now being steadily reintroduced into circulation. New investors are buying these coins during price dips and accumulating their positions.
“In the traditional world, this moment is called an IPO,” Visser said. He added that early believers are passing the torch to long-term holders. These new holders, who were purchased at higher prices, have different investment motivations than the original buyers.
The cryptocurrency has traded between $106,786 and $115,957 over the past seven days. Visser compared this price action to traditional stocks after they go public. Early investors sell their positions while the stock consolidates during broader market rallies.
“The result? A sideways grind that drives everyone crazy,” Visser said. He noted that fundamentals remain strong despite frustrating price movements—the broader market rallies while Bitcoin sits in a consolidation range.
Market Sentiment Shows Fear Despite Strong Fundamentals
The Crypto Fear & Greed Index has returned “fear” ratings for the digital asset since Wednesday. The index tracks market sentiment toward Bitcoin and other cryptocurrencies. Last week also recorded an average fear rating across the measurement period.
Visser believes that faith in the underlying asset remains strong, as indicated by several indicators. Exchange-traded fund approvals continue to move forward for the cryptocurrency. The network hashrate reached new highs recently while stablecoin adoption grows.
“Bitcoin is consolidating, not collapsing,” Visser explained. He pointed out that every price dip gets bought by new investors. The price holds within a range instead of making new lows.
The divergence from other risk assets creates confusion among market participants. However, Visser stated that fundamentals are stronger than ever for the cryptocurrency. The transition from concentrated to fragmented ownership is necessary for long-term success.
Distribution Phase Expected to Continue for Months
Visser predicts the IPO phase will continue for several more months based on traditional patterns. Standard IPO processes typically last between six and 18 months after the company goes public. Bitcoin moves faster than conventional assets but remains around the six-month mark currently.
Reduced volatility is likely to result once the distribution phase is completed across the market. Ownership will spread among many more holders, rather than being concentrated among early adopters and founders. This broader distribution creates a more stable price structure for the asset.
“For now, expect continued consolidation,” Visser said. He warned that Bitcoin will continue to frustrate investors by not rallying in tandem with risk assets. Sentiment may remain poor for a while longer before the pattern shifts.
The shift will occur without clear signals, as good news is already present in the market. Early investors sell their positions while institutions and long-term holders accumulate. This ownership transfer represents what success looks like for the maturing cryptocurrency market.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
