Bitcoin is still the leading cryptocurrency. The anticipated growth in the Bitcoin market has not materialized despite recent developments such as spot Bitcoin Exchange Traded Funds. price surge to $100,000 remains ‘unrealized.’
Charles Edwards of Capriole Investments commented and posted on Elon Musk’s social media platform X. explain Bitcoin is still unable to reach this important milestone.
Read Related Articles
Bitcoin Stagnation below $100k
Edwards believes that the long-term Bitcoin holders are the main factor. Edwards’ analysis shows that wallets which have held Bitcoin over the past two years are declining, going from a high of 57% at December 2023 down to just 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. Price pressure is caused by this sell-off of investors who have been in the market for a long time.
Edwards pointed out, too, that the market is still feeling the effects of the Bitcoin halving in April which saw the daily Bitcoin issuance reduced by 50%.
The impact of Halving has not been seen yet.
We will see the difference between ETF usage and Bitcoin mined increase a great deal over time, as the daily Bitcoin issue drops by 50 percent in April. next year. It also takes full quarters for institutions to review, sign-off and… pic.twitter.com/bAxfFzv6L8
— Charles Edwards (@caprioleio) June 7, 2024
The gap between bitcoins purchased with spot ETFs, and their reduced production from mining is expected to widen dramatically. This will highlight the need for financial Institutions should continue to lead in Bitcoin purchases and adjust their strategy.
Edwards also identified three important factors that are crucial for the success of a sharp rise Bitcoin prices increased as a result of: daily purchases by ETFs, decreased selling from long-term holders and increased liquidity in the U.S. markets.
BTC Prices Slow Down Despite Record Inflows of ETFs
Bitcoin trades at $71,926It is struggling to show any increase in price over the past day, even though it has seen a 4,9% hike within the last seven days.
Charles Edwards explains the reasons why Bitcoin has not reached $100,000. Other experts analyze how substantial flows into BTC spot ETFs did not translate into an equivalent price increase.
ETFs have a limited impact on the market, according to experts. Bitcoin’s price. Christopher Inks is a veteran crypto trader who points out how the Bitcoin market has a complex mix of trading in spot, futures and options as well as ETFs.
Inks believes that the focus solely on ETFs is not a comprehensive view of the current market. In response to a question from X users 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..”
Discussions among financial Experts illuminate the complexity of the BTC Market. Analyst Eric Balchunas says that Bitcoin investors selling their Bitcoins may be the reason for the low price despite ETFs.
It’s the same call I said before. The ETFs are not to blame, as they’ve been purchasing like crazy, but rather bitcoin holders or leveraged flusters or other investors. Time and again ETFs go on flow-a-thons and its met with… https://t.co/iuGNayrLgd
— Eric Balchunas (@EricBalchunas) June 6, 2024
Jimie is another expert. explains While ETFs are a part of market activity, their share is a very small percentage.
Read Related Articles
Jimie said that large holders control the majority (“whales”This could be due to the trading activity of a third party (such as a broker), which would overshadow ETF purchases. The dynamic shows that ETFs are often accompanied by heavy sales, which maintains price stability.
Chart created by TradingView, DALL-E.
“This article is not financial advice.”
“Always do your own research before making any type of investment.”
“ItsDailyCrypto is not responsible for any activities you perform outside ItsDailyCrypto.”
Source: www.newsbtc.com