Bitcoin Veterans Cashing Out May Lead to Increased Losses, Warns Schiff

Bitcoin's value has seen a significant decline of over 30% from its peak of $126,000, currently hovering around $85,500. Peter Schiff, a notable gold investor, warns that recent actions by long-term Bitcoin holders transitioning into sellers could exacerbate future market sell-offs. This movement is occurring amid declining liquidity, leading to increased price volatility.

Key Takeaways

Bitcoin has dropped more than 30% from its all-time high of $126,000.
Peter Schiff warns that selling by veteran holders may trigger deeper market losses.
Over 400,000 BTC were transferred by major investors in October, contributing to selling pressure.
Major withdrawals from Bitcoin ETFs have added to market concerns; nearly $1 billion was withdrawn in one session.
Despite recent selling, there were signs of renewed inflows into ETF products, indicating a potentially quick market reversal.

Bitcoin

Schiff's Cautionary Message

Peter Schiff has stated that Bitcoin may be reaching its “IPO moment.” He believes that when long-term holders sell their assets, it results in increased supply at the market's peak, potentially leading to larger future sell-offs. Schiff mentions that significant amounts of Bitcoin shifting from experienced to newer investors not only increases liquidity but also indicates that any ensuing downturns will be more pronounced.

"Some argue that after all these years Bitcoin is finally having its IPO moment now that there’s enough liquidity for the OGs to cash out. I agree, but this much Bitcoin moving from strong to weak hands not only increases the float, but also means future selloffs will be bigger." — Peter Schiff (@PeterSchiff) November 22, 2025

Major Investor Activity

Recent reports reveal that prominent investors, commonly referred to as "whales," and early Bitcoin adopters moved more than 400,000 BTC in October, which has contributed to heightened selling pressure. Notably, investor Owen Gunden liquidated his entire stake of 11,000 BTC during October and November.

In addition, well-known retail investors have also sold large amounts of Bitcoin. Robert Kiyosaki, for instance, announced a sale of approximately $2.25 million. He originally purchased Bitcoin when it was around $6,000 and sold it near $90,000, planning to reinvest the proceeds into income-generating ventures.

Analysts from Bitfinex identify two main causes for Bitcoin's recent price drop: sales by long-term holders and forced liquidations in the derivatives markets. When margin calls occur, prices can plummet rapidly before stabilization is found.

BTC/USD Trading at $86,550

ETF Withdrawals and Market Reactions

According to reports from Bloomberg and fund disclosures, nearly $1 billion was withdrawn from Bitcoin ETFs in just one session, marking the second-largest outflow among twelve funds. BlackRock’s IBIT recorded the most significant withdrawal at $355 million, while Grayscale’s GBTC and Fidelity’s FBTC each saw around $200 million exit.

In the past month, ETF products noted approximately $4 billion in net outflows. Market analysts from Citi Research have indicated that every $1 billion withdrawn corresponds to about a 3.4% negative impact on Bitcoin's price. However, a recent report indicates that ETFs experienced $238 million in inflows yesterday, showcasing how quickly market dynamics can shift.

Schiff's warning serves as a reminder that the market may still experience turmoil when influential holders sell their assets. Even with some institutions purchasing Bitcoin, the transfer of coins from long-term holders to newer investors could lead to even sharper price declines in the future. Observers will likely be attentive to the actions of these veteran holders, as their decisions could strongly influence the market's direction and the severity of any upcoming crashes.

Featured image from Born Free Foundation, chart from TradingView