Bitcoin Whales, Why Aren't They Selling? Shocking 'Consumption Without Selling'

▲ Bitcoin Whale

Key asset holders in the virtual asset market are shifting to a strategy of utilizing collateralized loans instead of selling to reduce tax burdens and maintain upward returns on their held assets.

According to cryptocurrency specialized media Benzinga on April 27 (local time), major investors are showing a preference for collateralized loans to avoid taxes incurred when selling Bitcoin (BTC) and Ethereum (ETH) and to retain opportunities for further gains. Recently, a consumption pattern has spread where virtual assets are used as collateral to purchase luxury cars or jewelry, going beyond mere storage.

This change is spreading even faster due to the combination of distribution and financial services. Companies that have introduced virtual asset-backed payment and installment services have boosted customer conversion rates by 3 to 5 times, and the average order value has also increased by 15% to 25%. In particular, as Millennials and Gen Z, who account for 40% of global luxury consumption, utilize virtual assets as a primary payment method, the market structure is changing.

Wealthy individuals employ a strategy that separates asset holdings from liquidity management. They maintain asset ownership by not directly selling Bitcoin but instead using it as collateral to secure funds for ongoing consumption. This structure reduces the selling volume in the market, thereby alleviating downward price pressure.

Financial institutions are also responding to demand by enhancing virtual asset-backed loan products. As the regulatory environment improves, institutional investors are also actively utilizing infrastructure that allows them to use assets like cash without disposing of them. The process of virtual assets establishing themselves as substantial financial assets is gaining momentum.

The expansion of a loan-centric ecosystem also brings changes to the market's supply and demand structure. As whale investors do not sell their assets but tie them up as collateral, the circulating supply tends to decrease. A structure where supply is limited while demand is maintained acts as a factor supporting price increases.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*