Bitcoin Whales: Why Aren't They Selling? The Shock of '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 rising returns on their holdings.

According to crypto media outlet Benzinga on April 27 (local time), major investors are increasingly favoring collateralized loans to avoid taxes incurred when selling Bitcoin (BTC) and Ethereum (ETH) and to retain opportunities for further appreciation. Recently, a consumption pattern has spread where virtual assets are used as collateral to purchase high-end vehicles or jewelry, moving beyond simply holding them.

This change is accelerating further through 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 increased by 15% to 25%. In particular, as Millennials and Gen Z, who account for 40% of global luxury consumption, increasingly use 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 using it as collateral to secure funds for consumption. This structure reduces the selling pressure in the market, alleviating downward price pressure.

Financial institutions are also enhancing their virtual asset-backed loan products to meet demand. As the regulatory environment becomes more established, institutional investors are also actively utilizing infrastructure that allows them to use assets like cash without disposing of them. The process of virtual assets becoming substantive financial assets is now in full swing.

The expansion of a loan-centric ecosystem also brings changes to the market's supply and demand structure. As whale investors lock up their assets as collateral instead of selling them, the circulating supply tends to decrease. A structure where demand is maintained while supply is limited 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.*