Bitcoin Stubborn Stand Below $100K: What’s Holding It Back?


Bitcoin
continues
to
be
the
market
leader.
However,
despite
significant
developments,
such
as
the
introduction
of
spot
Bitcoin
Exchange-Traded
Funds
(ETFs),
the
anticipated

price
surge
to
$100,000
remains
‘unrealized.’

Charles
Edwards,
founder
of
Capriole
Investments,
commented
on
this
and
took
to
Elon
Musk’s
social
media
platform
X
to

explain
the
hurdles
preventing
Bitcoin
from
achieving
this
milestone.


Related
Reading

Examining
Bitcoin’s
Stagnation
Below
$100k

According
to
Edwards,
one
of
the
primary
factors
is
the
sale
of
Bitcoin
by
long-term
holders.
His
analysis
shows
a
decline
in
wallets
holding
Bitcoin
for
over
two
years,
from
an
all-time
high
of
57%
in
December
2023
to
54%.

How To Get Free Crypto  
The
growth
rate
of
Bitcoin
holders.
|
Source:

Charles
Edwards
on
X

Although
this
3%
drop
might
seem
minor,
it
represents
about
630,000
BTC—far
exceeding
the
quantity
purchased
by
US
Bitcoin
ETFs
since
January.
This
sell-off
by
long-standing
investors
is
exerting
downward
pressure
on
the
price.

Edwards
also
pointed
out
that
the
market
has
yet
to
fully
feel
the
impact
of
Bitcoin’s
halving
event
in
April,
which
reduced
the
daily
issuance
of
Bitcoin
by
50%.

He
believes
that
the
gap
between
the
amount
of
Bitcoin
purchased
by
spot
ETFs
and
the
reduced
output
from
mining
will
widen
significantly,
underscoring
the
need
for
financial
institutions
to
adjust
their
strategies
and
continue
leading
in
Bitcoin
acquisitions.

Meanwhile,
Edwards
identified
three
key
factors
that
he
believes
are
essential
for
a

sharp
rise
in
Bitcoin’s
price:
increased
daily
ETF
purchases,
reduced
selling
by
long-term
holders,
and
an
expansion
in
U.S.
market
liquidity.

Coinbase Banner  

BTC
Price
Slow
Amid
Record
ETF
Inflows

Bitcoin

trades
at
$71,926,
showing
modest
movements
as
it
struggles
to
mark
any
price
increase
over
the
past
24
hours,
despite
a
4.9%
rise
in
the
last
7
days.

BTC
price
is
moving
sideways
on
the
4-hour
chart.
Source:
BTC/USDT
on

TradingView.com

While
Charles
Edwards
has
detailed
reasons
behind
Bitcoin
not
reaching
the
$100,000
milestone,
other
experts
are
analyzing
why
substantial
inflows
into
spot
BTC
ETFs
have
not
translated
into
a
corresponding
price
surge.

Experts
believe
that
various
factors
muffle
ETFs’
influence
on

Bitcoin’s
price.
Seasoned
crypto
trader
Christopher
Inks
points
out
that
a
complex
interplay
of
spot
trading,
futures,
options,
and
ETFs
influences
the
Bitcoin
market.

Inks
stresses
that
an
exclusive
focus
on
ETF
activities
does
not
provide
a
complete
view
of
the
market
dynamics.
Responding
to
a
user
query
on
X
about
the

FreeBitcoin Banner  

stagnant
price
despite
ETF
purchases,
Inks
remarked,
“You
do
realize
the
market
is
made
up
of
spot,
futures,
ETFs,
and
options,
right?
Price
at
any
point
in
time
is
a
product
of
all
of
these,
not
just
one
of
them..”

Further
discussions
among
financial
experts
illuminate
the
multifaceted
nature
of
the
BTC
market.
Analyst
Eric
Balchunas
suggests
that
the
lack
of
price
movement
despite
ETF
purchases
might
be
due
to
existing
Bitcoin
holders
selling
their
holdings,
which
balances
out
the
buying
pressure
from
ETFs.

Another
expert,
Jimie,

explains
that
while
ETFs
contribute
to
market
activity,
they
represent
a
small
portion
of
the
total
Bitcoin
circulation.


Related
Reading

Jimie
added
that
the
majority
is
controlled
by
large
holders
(“whales”),
whose
trading
activities
could
overpower
the
influence
of
ETF
buying.
This
dynamic
indicates
that
significant
buying
by
ETFs
often
meets
with
heavy
selling,
maintaining
price
equilibrium.

Featured
image
created
with
DALL-E,
Chart
from
TradingView

Go to Source
Author: Samuel Edyme


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