Despite a huge influx of money into Bitcoin ETFs (over $1.5 billion in the last three days), Bitcoin’s price is still below the highly anticipated $100,000 mark.
Factors Holding Back Bitcoin’s Price
Charles Edwards, CEO of Capriole Investments, explains that several factors are contributing to this:
- Selling by Long-Term Holders: Long-term holders (those holding for over two years) have sold about 630,000 Bitcoins, offsetting the demand from ETFs.
- Transition from Older Investment Vehicles: Some selling is due to investors moving from older investment vehicles like Grayscale’s BTC Trust to newer ETFs.
- Halving Effects Not Yet Realized: The halving in April reduced Bitcoin issuance by 50%, but its full impact has yet to be seen.
- Market Timing and Macroeconomic Conditions: June is typically a slow period for financial markets, and the current liquidity environment is not favorable for investing in risky assets like Bitcoin.
Catalysts for Future Price Appreciation
Edwards believes that the following factors could drive Bitcoin’s price to $100,000 and beyond:
- Increased daily buying volumes from ETFs
- Decreased selling from long-term holders
- Rejuvenation in US liquidity
