Massive withdrawal of Bitcoin

[Bitco55]

Anytime the price of Bitcoin skyrockets, there would be massive selling of Bitcoin and this practice(s) have always lead to the price of Bitcoin falling back afterwards. During the approval of spot Bitcoin ETFs, it was observed that the massive selling of Bitcoin when the price got to $48,000 made the price to fall to $38,000, it was after the corrections that the price began to soar higher again till now that it has set a new ATH of about $69,210 and immediately, massive selling and withdrawal of Bitcoin was also noticed.

Wouldn't this continues practice of withdrawing and selling off whenever the price skyrockets going to slow the volatility of Bitcoin to continue skyrocketing? Since the price automatically starts experiencing a dip after every massive withdrawal.

What you said is right, OP but, In as much as that's the best time to hodl, so one's worth continues to increase, it's also just how the market works. Besides, not everyone sells off their Bitcoin and altcoins at this moment. Having Bitcoin at its ATH period is a factor and huge influence on people's wealth skyrocketing, but at the same time, not everyone sells and accepts Bitcoin, leading to the withdrawal and exchange for fiat currency.

[electronicash]

Anytime the price of Bitcoin skyrockets, there would be massive selling of Bitcoin and this practice(s) have always lead to the price of Bitcoin falling back afterwards. During the approval of spot Bitcoin ETFs, it was observed that the massive selling of Bitcoin when the price got to $48,000 made the price to fall to $38,000, it was after the corrections that the price began to soar higher again till now that it has set a new ATH of about $69,210 and immediately, massive selling and withdrawal of Bitcoin was also noticed.

Wouldn't this continues practice of withdrawing and selling off whenever the price skyrockets going to slow the volatility of Bitcoin to continue skyrocketing? Since the price automatically starts experiencing a dip after every massive withdrawal.

What you said is right, OP but, In as much as that's the best time to hodl, so one's worth continues to increase, it's also just how the market works. Besides, not everyone sells off their Bitcoin and altcoins at this moment. Having Bitcoin at its ATH period is a factor and huge influence on people's wealth skyrocketing, but at the same time, not everyone sells and accepts Bitcoin, leading to the withdrawal and exchange for fiat currency.

those who sold their coins as early as now i think will regret it when they see the price goes more than 70k sooner. they are likely short-term investors but this is the time to become a long-term investor which makes sense because these investors are waiting for the effect of the halving.

those who withdraw BTC are among those who wants to hold and this makes BTC supply fewer and fewer in the circulation and the demand keeps rising and we all know what will happen in this case.

[serjent05]

Since the price automatically starts experiencing a dip after every massive withdrawal.

This is what we call taking profit (I am taking massive withdrawal as massive selling of BTC due to the word dip).  People who invested in Bitcoin when it was around cheaper are securing their profit.  Aside from that the automatic dip experienced after the Bitcoin price surge is often times called a correction.  Since Bitcoin is overpriced due to hype and positive emotions in the market, the price needs to be stabilized somewhere to be able to establish the average trading rate.  It is obvious that when a large supply is being sold, the market will experience retracement since demand is outweighed by the incoming supply.

Since Bitcoin is an open market, the price often swings wildly and this is the reason why the Bitcoin market is considered highly volatile.

those who sold their coins as early as now i think will regret it when they see the price goes more than 70k sooner. they are likely short-term investors but this is the time to become a long-term investor which makes sense because these investors are waiting for the effect of the halving.

Not entirely true, people or investors have their target price, so it is normal for them to sell when they meet their selling price.  Only greedy people will regret after selling their stash at their set target price since they don't have contentment and always want to get the highest possible profit.

[lalabotax]

Anytime the price of Bitcoin skyrockets, there would be massive selling of Bitcoin and this practice(s) have always lead to the price of Bitcoin falling back afterwards. During the approval of spot Bitcoin ETFs, it was observed that the massive selling of Bitcoin when the price got to $48,000 made the price to fall to $38,000, it was after the corrections that the price began to soar higher again till now that it has set a new ATH of about $69,210 and immediately, massive selling and withdrawal of Bitcoin was also noticed.

Wouldn't this continues practice of withdrawing and selling off whenever the price skyrockets going to slow the volatility of Bitcoin to continue skyrocketing? Since the price automatically starts experiencing a dip after every massive withdrawal.

Usually, when facing a bullish era, many transactions leave wallets. Especially with the current conditions where Bitcoin prices have exceeded the ATH of the last bullish season. So, maybe there are many parties who are getting ready to take profits periodically. And indeed, trading activities during bullish eras are also usually higher. So, they also need to anticipate a network crash if they do it at a time that is very close to a bullish peak.

those who sold their coins as early as now i think will regret it when they see the price goes more than 70k sooner. they are likely short-term investors but this is the time to become a long-term investor which makes sense because these investors are waiting for the effect of the halving.

If they are long-term holders, of course. Because the price of Bitcoin will of course increase again and will continue to print a new ATH in this bullish era. More likely after the Bitcoin halving. This will be an even more significant thing to monitor the Bitcoin market.

However, this may be different for traders, both day traders and short term holders. Maybe they have their own strategy to navigate this market phase.

[Raflesia]

Wouldn't this continues practice of withdrawing and selling off whenever the price skyrockets going to slow the volatility of Bitcoin to continue skyrocketing? Since the price automatically starts experiencing a dip after every massive withdrawal.

It depends on the mindset of each investor because in the end all who are in bitcoin must want the profit they have to get and in this case we must have a goal where we will sell the bitcoin we already have regardless of whether that means massive sales that occur or not because in the end all have that goal.
Now those who sell their assets can still very much happen and it is not a mistake because they want this to be the end of holding them and they have to go because it is already profitable for themselves so it is quite natural when profits are obtained then they come out massively but on the other hand we must be aware that when someone sells then there will definitely be many who buy because on the other hand there will be a lot of people who are of the view that currently the momentum will still continue and the progress of bitcoin will not stop until now so they will definitely continue to collect bitcoin until they finally sell when their target is reached.

[salad daging]

When the price is high they sell it, isn't that normal? Maybe they think it's a decent profit then sell it anyways from the sale that buyers will definitely be more even though there is a slight decline in bitcoin still returns, is this way you feel panic?

That's how the bitcoin market works when the price skyrockets there will be a lot of goods dumped into the market but don't make you panic even though massive withdrawals are happening and it's natural even we often see where the pope makes millions of dollars in withdrawals it doesn't have any impact on the market.

Why are they selling now? There are certain reasons why they are selling we cannot be sure, but believe that bitcoin will skyrocket again.

[Natalim]

Well, this is expected but I'd never see it wrong as it was already a profitable price especially if you are buying at $40k as an example. I understand these people as they just securing their funds. In fact, holding is just an option but we are encouraged to do this. However, this couldn't force everyone to do the same as they are the ones controlling their funds. As long as they feel no regrets of doing this, then still it was a good choice for them.

Sell some (like 50%) and hold the other 50% for the next ATH. I see people are doing good this time, they are earning surely.

[oktana]

That is how volatility works. It’s an open market and anyone can buy or sell whatever amount they want to. While you’re hoping it gets to $70k, there’s someone who wants to take profit at $69k and that’s fine because that’s how it works. If more people are purchasing then the value will increase irrespective of the amount on sale. Currently I’ve noticed that it’s been hovering around for a way and it’s because but buying and selling forces are just about the same.

[Assface16678]

That is how volatility works. It’s an open market and anyone can buy or sell whatever amount they want to. While you’re hoping it gets to $70k, there’s someone who wants to take profit at $69k and that’s fine because that’s how it works. If more people are purchasing then the value will increase irrespective of the amount on sale. Currently I’ve noticed that it’s been hovering around for a way and it’s because but buying and selling forces are just about the same.

As you said, that's how the market works or that's how investors work; we can't control those who will sell their assets or holdings as we don't know who they are, and it is not right to stop them from getting what they want. That's why bitcoin is freedom in the sense that you are free when it comes to finances. As long as those whales or big bitcoin holders don't sell, I think we are fine, or the price of bitcoin will still linger at a high price or the price will still go up, but of course it could become slower when there are small investors who sell their assets. But based on bitcoin's current community, I don't think that right now we will let the price of bitcoin go down; we aim for a higher amount, so until the bitcoin halving comes, we will not sell our assets.

[Mate2237]

All businesses are to make profits if someone invested.in bitcoin when bitcoin was on the bear market and now that bitcoin is on the peak in the market let those who can sell and collect their profits. All investors were waiting for this period so this an opportunity for them to sell. And your logic of the bear market is also not far the truth because when the selling hands are more the buyers will reduce price and that is one the cause of the bitcoin bearing market. And tht is also another cause the slow movement of bitcoin to hit $70,000.

Op I don't know if bitcoin has hit $69,210 but I only know that bitcoin hit $69,000 and drastically come down again.

[Barikui1]

Actually to me it's quite normal that people are taking some profit from their investment when the price of Bitcoin gets to their desired price, and besides, if their is no selling off at some point, their will be no price deep that will present a good buying opportunity, so I believe that, that's how the Bitcoin market is wired.

What is the essence of investing in the first place if you wouldn't sell off and make profit at some point? The primary purpose is to make money, so I don't sees it as something new to me.

[seoincorporation]

When the price is on its ATH is a critical point because it means all the holders are on a profit point, and the only way to win on that situation is by selling. That's why we saw that crazy crash from $69k to $61 in a short period of time, as you say, it means some whale sold a big amount of BTC, And it will happen again if the price gets that high. Some investors are looking to make a profit in the short term. If you think about those who bought at $61k yesterday, if they decide to sell now, then the could walk away with 10% profit, and that's big for 24h.

[The Cryptovator]

A massive withdrawal of Bitcoin should be considered a positive movement. Because withdrawal means they are securing their bitcoins, it doesn't mean selling their bitcoin. Because exchanges aren't a secure way to store our funds. They might collapse at any time for any reason. So it's necessary to secure funds in a non-custodial wallet. Massive withdrawals for stable coins would be a concern for sell-offs. 

[Antotena]

Anytime the price of Bitcoin skyrockets, there would be massive selling of Bitcoin and this practice(s) have always lead to the price of Bitcoin falling back afterwards. During the approval of spot Bitcoin ETFs, it was observed that the massive selling of Bitcoin when the price got to $48,000 made the price to fall to $38,000, it was after the corrections that the price began to soar higher again till now that it has set a new ATH of about $69,210 and immediately, massive selling and withdrawal of Bitcoin was also noticed.

Wouldn't this continues practice of withdrawing and selling off whenever the price skyrockets going to slow the volatility of Bitcoin to continue skyrocketing? Since the price automatically starts experiencing a dip after every massive withdrawal.

Do you think people just hold Bitcoin and then the price just moves on it own? No! People buy and sell and in every supports they buy, they sell before the resistance and that's how they continue to make their money through trading. Without them, the Bitcoin price will not go up and if they really took their time to buy, then expect a sell but the advantage is that during the bull run is that many buy and only few sell that's why Bitcoin price don't crash completely, so I think its normal for the price to move in that manner.

It will not slow down, the only thing that is going to stop the price of Bitcoin is when bad news keep coming repeatedly especially FUD that can change the mind of the people from been bullish to bearish, selling cannot stop bitcoin from skyrocketing, can't you see how we are now in $68k despite the resistance been $1k away from breaking it.

[Richbased]

Wouldn't this continues practice of withdrawing and selling off whenever the price skyrockets going to slow the volatility of Bitcoin to continue skyrocketing? Since the price automatically starts experiencing a dip after every massive withdrawal.

You need to understand that this process is the basic necessity that is required to balance the market because you don't expect everyone to continue hodling even when they have made some reasonable amount of profits because there are people who started this hodling long time ago and they must have gotten to their desired targets that's why they sell and some still re-buys during a correction and still continue to hodl, so that's what keeps bitcoin going and without a correction that would cause a dip, it would be hard for some investors to come in.

About withdrawal, due to the price of Bitcoin skyrocketing, investors that have huge amount of Bitcoins in exchanges tends to move their assets to hard wallets and non custodial wallets just for adequate security of their assets because leaving a huge amount of crypto in an exchange is very risky as it can easily be hacked and all your stored assets might vanish, though there are some exchanges that guarantees full security of one's assets but however, it's never advisable.

[Kakmakr]

That is just how a market that are based on supply and demands work, the reason why other commodity prices are less volatile, is because it is being manipulated.

Let's rather have these periods of pumping and recovery and let the market control it's own cycle. You do not want huge whales artificially controling the price, like they do with Fiat currencies.

[davis196]

Anytime the price of Bitcoin skyrockets, there would be massive selling of Bitcoin and this practice(s) have always lead to the price of Bitcoin falling back afterwards. During the approval of spot Bitcoin ETFs, it was observed that the massive selling of Bitcoin when the price got to $48,000 made the price to fall to $38,000, it was after the corrections that the price began to soar higher again till now that it has set a new ATH of about $69,210 and immediately, massive selling and withdrawal of Bitcoin was also noticed.

Wouldn't this continues practice of withdrawing and selling off whenever the price skyrockets going to slow the volatility of Bitcoin to continue skyrocketing? Since the price automatically starts experiencing a dip after every massive withdrawal.

You can't stop the traders from selling BTC at the price they want to sell. There's buying pressure on the market(we can call it a FOMO phase) but there's also selling pressure on the opposite side, because the temptation to sell at the current price is big.
I don't think that you really understand the term "volatility". The price corrections and price crashes are also part of price volatility, not just the price pumps. Why do you bother with withdrawals from the centralized exchanges. Bitcoin is supposed to be held in cold wallets so less coins in centralized exchanges is actually a good thing.

[Marvell1]

A massive withdrawal of Bitcoin should be considered a positive movement. Because withdrawal means they are securing their bitcoins, it doesn't mean selling their bitcoin. Because exchanges aren't a secure way to store our funds. They might collapse at any time for any reason. So it's necessary to secure funds in a non-custodial wallet. Massive withdrawals for stable coins would be a concern for sell-offs. 

The OP's title mentions withdrawing a large amount of bitcoin but what he wrote in his thread is about selling a large amount of bitcoin that will make it impossible for the bitcoin price to increase.

What you say is not wrong, a large amount of bitcoin withdrawn from the exchange to the wallet is a good move to push up the price of bitcoin because it causes a temporary supply shortage. But selling large amounts of bitcoin is not necessarily a bad thing for the market in the long run. Because there will always be other large whales absorbing all the bitcoin sold and the market will soon adapt to that, then bitcoin will continue to increase in price. I'm not afraid of someone selling bitcoins in bulk because it's a cheap buying opportunity, what I'm afraid of is that there won't be any buyers but that never happens. As long as there is still demand in the market, it is only a matter of time before bitcoin prices move higher.

[UchihaSarada]

Wouldn't this continues practice of withdrawing and selling off whenever the price skyrockets going to slow the volatility of Bitcoin to continue skyrocketing? Since the price automatically starts experiencing a dip after every massive withdrawal.

You don't need to worry about this. Recently, there have always been large amounts of Bitcoin sold, but they are all bought back by large funds, this is proven when the cash flow into Bitcoin EFT funds is always positive cash flow. There are always sellers and buyers in the market, the amount of Bitcoin on the market is not much left, anyone who needs to sell has already sold it all, on the contrary the demand to buy Bitcoin is much greater than the demand to sell. At some point, when those who sold realize that they sold right at the base of the rising wave, they will rush to buy it back at a higher price, thereby leading to a sharp increase in the price of Bitcoin.

[Fivestar4everMVP]

Anytime the price of Bitcoin skyrockets, there would be massive selling of Bitcoin and this practice(s) have always lead to the price of Bitcoin falling back afterwards. During the approval of spot Bitcoin ETFs, it was observed that the massive selling of Bitcoin when the price got to $48,000 made the price to fall to $38,000, it was after the corrections that the price began to soar higher again till now that it has set a new ATH of about $69,210 and immediately, massive selling and withdrawal of Bitcoin was also noticed.

Wouldn't this continues practice of withdrawing and selling off whenever the price skyrockets going to slow the volatility of Bitcoin to continue skyrocketing? Since the price automatically starts experiencing a dip after every massive withdrawal.

The thing is, bitcoin is money free from governmental or any third party control, if you own bitcoin, you own it and can freely without any restrictions, sell it at anytime and at what ever price you want, this is the type of free market Bitcoin and crypto currencies make or made available to the world, so, there is absolutely no need complaining of who sold, and at what price what price they sold, because we all have equal opportunities here, anybody can take profit anytime they want and it's their right.

What I believe we the strong believers can do is, anytime there is a major sell offs like you pointed out, it's an opportunity for us to buy even more bitcoins at a cheaper rates, because certainly without doubt, after sell-off/corrections, the price of bitcoin will always go higher and higher again, as long as we are in a season as this, the bull run, the only time it's usually an issue is when and if we are in a strong bear season.