Analysts warn that Bitcoin holdings companies may trigger the next major crash.

Gate News bot message, crypto assets analyst DonAlt warns that Bitcoin may be brewing a storm - and the drivers of this storm may not be speculators, but institutional investors.

He believes that companies hoarding Bitcoin may ultimately become the largest source of selling pressure in the market.

Currently, global companies hold over 1.1 million Bitcoins (worth over $117 billion), and he believes that the factors driving this cycle’s rise may also accelerate the next crash.

According to this analyst, the next decline may resemble the catastrophic bear market of 2018, when Bitcoin plummeted more than 80% from its peak. “No one is prepared for the intensity of the next bear market,” he said, noting that institutional holders may engage in liquidation during financial stress or price drops.

Nevertheless, DonAlt remains optimistic about the short-term trend. He pointed out that as long as Bitcoin stays above $101,000, its trend will remain unchanged. However, if it falls below that level, it could quickly drop to $95,000 or even $90,000.

Source: Cryptodnes