On Wednesday, Bitcoin experienced a 2.5% decline to $61,500, alongside Solana and Bitcoin Cash, both seeing drops exceeding 7%.
Cryptocurrency markets remain entrenched in a corrective phase, with looming supply events worth billions potentially prolonging any significant recovery. According to a Wednesday report from crypto analytics firm 10x Research, a rapid succession of nearly $2 billion in token unlocks over the next ten weeks could dampen the market for altcoins.
Typically, significant token unlocks in the crypto sphere are viewed as bearish events, as they increase supply by releasing assets previously locked in vesting contracts to team members, organizations, and early investors, including venture capital firms. Over the next two months, various tokens, including APT, STRK, ARB, IMX, AVAX, OP, PRIME, SUI, ENA, ALT, and XAI, totaling nearly $2 billion, are expected to enter circulation, as per data compiled in the report.
The report also highlights potential pressure on venture capital investors to realize recent gains, which could limit the upward momentum of tokens, particularly those subject to unlocks.
However, it’s not just altcoins facing selling pressure. K33 Research analyst Velte Lunde cautioned in a Tuesday report that over $11 billion worth of Bitcoin will be distributed to creditors of crypto exchange Gemini’s Earn program and the now-defunct Mt. Gox crypto marketplace. Lunde warned of forthcoming waves of FUD (fear, uncertainty, and doubt) in the crypto market.
Nevertheless, some analysts foresee potential relief amid these supply events. Pending approval from bankruptcy courts, Arthur Cheong, founder and chief investment officer of DeFiance Capital, anticipates substantial funds in U.S. dollars—potentially $14-$16 billion—flowing back into the market. Cheong estimates that at least $3-$5 billion of crypto-native liquidity could be injected into the market, offering a source of support.
In Wednesday’s trading, the CoinDesk 20 Index recorded a 3.4% decline over the past 24 hours, with Bitcoin at $61,500 and Ether down 3.6%. Bitcoin Cash and Solana were the poorest performers, each experiencing declines exceeding 7%.
