Although significant milestones such as the spot Bitcoin ETF were achieved earlier this year, the expected Bitcoin price rise to $100,000 has remained elusive, ensuring the BTC dominance of the market.
Charles Edwards, the director of Capriole Investments, spoke about the future of Elon Musk’s platform X, discussing what prevents Bitcoin from reaching this level.
Unpacking Bitcoin’s Hold Below $100k: Investigating the Policy’s Stagnation
According to Edwards, significant Bearish pressure comes from the sale of BTC by longtime holders. The given wallet data provides evidence for decreasing holdings from 57% to 54% over two years to form Bitcoin’s current trend.
The 3% decline translates to about 630 000 BTC, which is more than the volume bought by US Bitcoin ETFs since January, adding to the bearish pressure that long-term investors have put on the market.
Edwards cites Bitcoin’s halving, which took place in April, and the delayed effects of the same as a sign of future changes in the market.
He contrasts what he believes to be a growing distance between spot ETFs buying up Bitcoin and decreased mining production, stressing that institutions must continue to evolve their practices and remain dominant in BTC procurement.
Edwards pinpoints three critical factors for a significant BTC price surge: increased daily ETF acquisition, reduced long-term investor disposal, and broadened market depth of U.S. securities.
Interpreting the Bitcoin Price Stagnation Alongside Record Inflows of ETFs
BTC does not change significantly and stays at $71,926 with only minor fluctuations, despite the 4.99% weekly movement that portrays that it faces challenges to deliver higher price appreciation in the weekly period.
While Charles Edwards discusses the factors that prevented Bitcoin from rising to $100,000, others try to explain why Bitcoin did not rally even with large purchases of spot BTC ETFs.
Charges have it that the influence of ETFs on Bitcoin’s price is dampened by spot trading, futures, options, and ETFs, according to Christopher Inks, a seasoned trader.
Inks argues that it is misleading to center the discussion only on ETPs, arguing that the price of BTC is influenced by spot prices, futures, ETPs, and option prices.
Fractal specialists go further in researching the subtleties of the BTC market, with the analyst Eric Balchunas suggesting that the lack of BTC price increase despite ETF purchases can be explained by the decrease in its purchasing effect due to existing Bitcoin holders selling their coins.
Jimie goes further on to state that although ETFs contribute to market activity, they do not contribute significantly to the total turnover of Bitcoins.
To some extent, Jamie also insists that whales’ control over bitcoins might overshadow ETF buying; however, ETF will continue to buy in large amounts and sell in equal measure, which will stabilize bitcoin prices.
