Bitcoin’s Stubborn Stand Below $100K: What’s Holding It Back?
07 Junio 2024 - 6:30PM
NEWSBTC
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: Is $100K Bitcoin Inevitable? This
Expert Say ‘Yes’—Find Out When 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%. 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%. We haven’t seen the impacts of the
Halving yet. With the daily Bitcoin issuance dropping by 50% in
April, we will likely see the delta between ETF consumption and
Bitcoin mined widen a lot over the next year. It also takes full
quarters for institutions to review, sign-off and…
pic.twitter.com/bAxfFzv6L8 — Charles Edwards (@caprioleio) June 7,
2024 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. 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.
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 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. I’ve said it before and I’ll say it
again, the call is coming from inside the house holmes. This is not
ETFs doing, obv bc they buying like crazy lately, it’s bitcoin
holders selling or leveraged flushers or whatever. Time and again
ETFs go on flow-a-thons and its met with… https://t.co/iuGNayrLgd —
Eric Balchunas (@EricBalchunas) June 6, 2024 Another expert, Jimie,
explains that while ETFs contribute to market activity, they
represent a small portion of the total Bitcoin circulation. Related
Reading: Buckle Up: Bitcoin’s Ride to $74K Could Start Any Minute –
Here’s Why 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
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