This selling activity, coupled with a broader supply dynamic, raises concerns about Bitcoin's ability to regain upward momentum amid ongoing supply pressures.

The overall outlook suggests Bitcoin is at a critical crossroads, with diminishing demand from institutional investors and persistent supply pressures, which could keep prices range-bound or lead to further declines.

Demand-side factors such as ETF inflows have previously driven Bitcoin higher, but these inflows have stalled since mid-July, indicating waning institutional interest.

In 2025, Bitcoin's performance has significantly lagged behind major asset classes, with only about a 5.78% return since President Trump's inauguration, underperforming stock indices and gold.

Recent US government seizures of Bitcoin have challenged its narrative as a censorship-resistant asset, potentially eroding investor confidence in its decentralized store of value.

This decline in network security, partly due to miners shifting focus from traditional mining to AI-driven data centers, may reduce Bitcoin's attractiveness to institutional investors, further lowering demand.

The shift by miners and whales contributes to supply dynamics, with some whales selling large amounts of Bitcoin, and miners reducing their hash rate, which could weaken network security.

Key signals to watch for a potential market shift include a halt in whale deposits to exchanges and renewed growth in Bitcoin ETF inflows and NAV, which could indicate a change in investor sentiment.

In response to increased government oversight and monitoring, some investors are turning to privacy coins like Zcash, seeking greater anonymity amid regulatory pressures.

Additionally, some traders sell their holdings once Bitcoin exceeds the psychological threshold of $100,000, as suggested by increased selling activity at that level.

Overall, the combination of supply pressures, waning demand, and security concerns paint a complex picture for Bitcoin's future trajectory, leaving it at a pivotal point.

A significant factor behind Bitcoin's recent weak performance is increased selling pressure from long-term holders, including large whales who have deposited over $600 million worth of Bitcoin to exchanges in October, signaling potential continued selling.