Crypto Analyst Claims Bitcoin OGs Losing Faith Amid Institutions

Early Bitcoin Whales Sell Amid Growing Institutional Adoption, Sparking Debate Over Crypto’s Future

  • Early Bitcoin investors are reportedly selling their holdings amid increased institutional participation.
  • Analyst Scott Melker suggests that some original Bitcoin owners are losing faith as the asset is adopted by the groups it was meant to oppose.
  • Other experts, such as Mike Alfred, argue that sales are often driven by personal reasons rather than doubts about Bitcoin’s future.
  • Widespread adoption, according to industry voices, may require involvement from financial institutions and a redistribution of early holdings.
  • Recent major Bitcoin sales, including an 80,000 BTC transaction, highlight ongoing changes in the asset’s ownership.

Early Bitcoin supporters are selling large amounts of the cryptocurrency as more financial institutions join the market, according to several analysts and industry participants. The trend has sparked discussion about trust in Bitcoin’s original purpose and the reasons behind these sales.

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Scott Melker, a well-known crypto analyst, stated in a social media post that some early and significant Bitcoin owners, often referred to as “whales,” are reducing their holdings. “Many of the most ardent early whales have seen their faith shaken and have been selling at these prices,” Melker said on X (formerly Twitter) on Saturday. He emphasized that Bitcoin, although originally seen as a hedge against traditional financial entities, has now been partially adopted by those same institutions.

In response, Mike Alfred, founder of Alpine Fox, said he disagreed with Melker’s conclusion. Alfred commented, “People make a personal decision to sell some or all their coins for a myriad of reasons that have nothing to do with the asset or protocol,” arguing that personal circumstances often drive selling activity. Other early investors, such as Willy Woo, have also sold large amounts of Bitcoin to focus on infrastructure investments, while PlanB moved significant holdings into Bitcoin ETFs for simpler asset management.

Industry participants like Dave Weisberger believe increased institutional involvement is necessary for widespread adoption. Weisberger said, “There is NO path to a Bitcoin standard without adoption by the public through the legacy institutions controlling the fiat system AND the distribution of OG held Bitcoin to those entities,” referring to original holders.

Analyst Crypto Mags noted, “Bitcoin is for everyone. Everyone INCLUDES enemies, governments, and Wall Street,” highlighting that ownership of Bitcoin is not restricted to any single group. Matt Hougan of Bitwise Invest added that Bitcoin remains “the first global money backed, not by the state and the threat of violence, but by logic and community.”

These developments come shortly after an early investor transacted 80,000 Bitcoin—worth billions of dollars—through Galaxy Digital in what was described as one of the largest deals in cryptocurrency history.

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