The Bitcoin Sell-Off Illusion: How Markets Really Crash and Why You Shouldn’t Sell

The Illusion of a Sell-Off: Why the “Mass Dumping” of Bitcoin Turned Out to Be a Phantom

Has everyone suddenly decided to sell their Bitcoin? Headlines scream panic, and charts show a crash. But let’s take a closer look at the real data, not the market noise. On-chain analysis reveals a shocking truth: behind the chaos lies not a mass exodus of investors, but a virtual storm played out in the databases of the largest exchanges.

The Numbers That Explain Everything

During the analyzed week, the picture was as follows:

Real selling pressure (on-chain): Only about 5% of the total transaction volume came from long-term holders intentionally selling “physical” bitcoin from their wallets.
Virtual pressure (exchange liquidations): Positions worth approximately $950 million were liquidated on futures markets, with 70% of them being long positions. This is what created the illusion of a colossal sell-off.
Flow to exchanges: The net flow of bitcoin to trading platforms was close to zero. There was no mass “flight” for selling.

Have you ever wondered where the price of Bitcoin is formed and why it’s almost the same on all exchanges and falls/rises in sync? Because the price is often shaped not so much by classic supply and demand, but by market maker bots managing liquidity. And this liquidity is often simply “drawn” in the databases of the largest exchanges.

This is not a conspiracy theory — it’s the mechanics of a modern, poorly regulated market. What happens inside the exchange order book is not recorded on the blockchain. The Bitcoin blockchain only records the fact of the final withdrawal of the asset. And on exchanges, a digital Wild West reigns.

When you have the ability to operate with almost limitless liquidity in the BTC/USDT pair (and some exchanges can issue USDT within their ecosystem), the market maker gets the tools to manage this chaos. Small exchanges, which only have a couple of BTC and USDT, often simply connect via API to the liquidity of major players, becoming part of this system.

Remember the FTX exchange. This has been proven in a criminal case, the guilty are imprisoned. The mechanics were similar: client assets were misused, and trading activity was largely fictitious. The same thing is happening now, but the world is turning a blind eye to it, while the system is controlled by elites and serves as a tool for redistributing funds.

So what should be done? Smart investors have already given the answer. They are not panicking and not selling their bitcoins. Their coins are sitting in cold wallets, which is clearly visible on the blockchain. They are not paying attention to the artificial noise created on exchanges, and most importantly, they are not storing their bitcoins on these platforms.

The conclusion is simple and categorical: do not sell your bitcoins. No more can be printed. If you sell them at a low, manipulation-formed price, you may never buy them back. That’s exactly what they are waiting for.

Bitcoin is in a huge deficit, and exchanges often simply don’t have it in the necessary quantity to satisfy all withdrawal requests at once. Those “funny money,” phantom “bitcoins” that are printed within the system for margin trading are not equal to real bitcoin. More have been created than exist in reserves. We are already waiting for the bankruptcy of the next major exchange players.

The most interesting part is yet to come. Do not succumb to panic, do not sell your bitcoins. There are only 21 million of them, and there will never be more. Your main trump card is to withdraw the asset from the exchange and wait out the artificial storm in your own, secure wallet. In this game, only the one who controls their private keys wins.

Yan Krivonossov