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.
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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…
Click Here to Read the Full Original Article at NewsBTC…
