Crypto is waiting for strong hands to take over.

In a tweet Ignas (DefiIgnas) was very clear in saying why crypto has been very stagnant lately. It is not about news or tech but who is holding.

According to Ignas the majority of the supply is still in the hands of two kinds of people: early adopters and retail. The early whales made big gains in the past years and are now older with families, so their goal has become clearer. They are selling, not because they are chasing after hype but primarily to institutions wanting to get long-term exposure. Retail is the second big problem. Retail trading is driven by emotions, when prices drop retail traders panic and when prices go up they chase the pump. This reaction once again creates volatility and does not create support for a steady long-term price stability.

The answer is what Ignas calls the 'Great Rotation.' Until a change in supply happens from impatient hands toward long-term holders who are not affected by price changes, there will be very little chance of a rally and much stagnation in the market. Looking back over the last few years institutional buyers were accumulating quietly when the price was dipping and seeing unlocks and VC supply flooding the market, there has been a lot of hype but not much progress.

This is an uncomfortable lesson but it can be useful. Markets do not move because of narratives, they move because ownership changes. If you are holding through this phase then you are waiting for that rotation to end.

Source: https://x.com/DefiIgnas/status/2003313546294362440