"OG whale sell-off not profit-taking…possibility of portfolio diversification"

A recent analysis suggests that the sell-off by Bitcoin (BTC) OGs (early investors) may not be aimed at profit-taking.

Martin Hiesboeck, head of research at cloud financial services firm Uphold, said on the 9th (local time) via X that "OGs selling bitcoin may be intending to buy it back in the form of an exchange-traded fund (ETF)." Hiesboeck said, "Under the current regulatory framework, especially in the United States, the tax advantages offered by ETFs are very significant," and added, "(ETFs) are also a way to justify long-hidden bitcoin holdings within the institutional framework."

He also listed diversification into other cryptocurrency asset classes as one of the reasons for selling. Hiesboeck said, "(OGs) have realized that the true innovation lies not in Bitcoin itself but in blockchain technology," and said, "Blockchain is already being used across all industries, and there are many projects that yield higher returns than Bitcoin." Hiesboeck added, "The investment thesis for Bitcoin is shifting from an asset bought in expectation of explosive returns to an asset for value preservation and hedging systemic risk," and "this is also why many Bitcoin investors are leaving to seek new opportunities."

He also mentioned investors' concerns about the selling pressure from OG whales (large investors). Hiesboeck said, "Even if some OGs partially or fully sell the (Bitcoin) amounts they hold, there is no need to worry," and stated, "They are simply moving away from 'Adolescent Maximalism'."