Glassnode, an onchain and financial metrics provider, has found that optimism in cryptocurrency markets might have waned, as participants are adopting new strategies to prepare for the future. The market is currently shifting into a new phase, that has big participants changing their stance.

According to Glassnode data, bitcoin holders are transitioning to a distribution phase, where large holders sell their coins to the market. This is supported by the current level of Glassnode’s accumulation trend score, a variable that tracks the balance of large entities and the changes in their wallets month-over-month.

Currently, this number sits at 0.21, indicating that these large players have stopped their purchases and are now distributing BTC to the market. This would also push prices down across the board due to the increase of the BTC offer in exchanges and OTC desks.

This behavior constitutes a change from the accumulating phase that started in October and lasted until December when most of these big participants increased their BTC holdings.

The shift is driven by ultra-large holders that own over 10K BTC, which have been selling since September. Also, Glassnode states that bitcoin whales holding between 1k and 10K BTC have ramped up their selling movements during the last two weeks.

This indicates the buying pressure of institutions like Microstrategy has been unable to drive the market to keep purchasing, even with the current pro-crypto stance of the upcoming administration.

On Tuesday, crypto markets faced a tumultuous drop where close to $390 million were lost during the sudden downturn. Analysts also have predicted that the market could fall even further, with bitcoin prices reaching less than $94,000, and even testing the $91,000 level in a bear outcome if sellers start dominating the market and the selloff spreads.

Read more: Crypto Market Meltdown: Bitcoin and Ethereum Freefall in Epic Tuesday Tumble

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