"Crypto asset market attempts to stabilize after sharp drop…sales by long-term holders are a burden"

The crypto asset (cryptocurrency) market is showing signs of regaining stability in the short term, but analysts say the burdens surrounding the market structure have not been resolved.

As of 3 p.m. on the 22nd, based on global crypto exchange Binance, Bitcoin was trading 0.75% higher than the previous day at US$88,840 (132,280,000 won). Since recovering to the 130,000,000 won range last week, it has maintained a relatively stable trend in the short term.

Altcoins also slightly rebounded. Ethereum was up 0.95%, Solana 1.19%, and XRP 0.70%. According to crypto asset comparison platform CrypPrice, Bitcoin's kimchi premium was 0.46% that day, indicating domestic prices were slightly higher than overseas.

However, the overall market size remains greatly contracted. According to CoinMarketCap, total crypto asset market capitalization was $3 trillion. Compared with $4.28 trillion (about KRW 6,327 trillion) recorded on October 7 last year, about $1.28 trillion has been lost.

The bearish market has been attributed to selling pressure from long-term holders. Bloomberg, citing a K33 Research report, said, "About 1.6 million Bitcoins that had not moved for more than two years since early 2023 (about $140 billion) were released into the market." Blockchain analytics firm CryptoQuant also analyzed that "in the past 30 days, movements of long-term holders' Bitcoins were the most active in five years."

ETF fund flows are also a burden. With inflows to spot Bitcoin ETFs turning into net outflows, and trading volumes of derivatives and retail investor participation both declining, it is assessed that supply is pouring into the market.

The Fear·Greed Index, which shows market sentiment, is at the 20 level, remaining in the 'Extreme Fear' range. Investor sentiment is subdued, but analysts say expectations for a technical rebound due to entering oversold territory are also forming.

Experts say short-term volatility may ease, but if long-term holder selling and ETF outflows continue, it will not be easy to lead to a sustained recovery. Market attention is focused on whether Bitcoin can maintain the $80,000 level as a mid- to long-term downside support.