Analyst Notes Bitcoin Price Stagnation Amid Long-Term Holder Selling
- Analysis reveals Bitcoin’s price has stalled due to long-term holders selling.
- New treasury companies are absorbing Bitcoin supplied by original holders.
- Bitcoin remains within a trading range between $102,000 and $110,000.
Stagnation Amid Institutional Demand Revealed
Bitcoin’s price has been notably stagnant, hovering between $102,000 and $110,000, as recent analysis from Charles Edwards draws attention to an interesting phenomenon regarding long-term holders. While there has been a surge in institutional interest, especially since the inception of spot Bitcoin ETFs in January 2024, original holders are selling off their Bitcoin, contributing to this price plateau. As Edwards suggests, this selling is not resulting in upward pressure on prices as one might expect, creating a perplexing situation for many in the market.
Treasury Companies Change the Game
The newly emerging cohort of six-month holders, primarily composed of treasury companies, is stepping in to pick up this supply from original holders. This group has been very active in acquiring Bitcoin, absorbing the vast amounts that the long-term holders have sold over the past 1.5 years, as Edwards pointed out. In his commentary, he emphasized how the amount of Bitcoin acquired by this cohort in just the past two months has outstripped everything that long-term holders have unloaded, demonstrating a significant shift in market dynamics, driven by this new treasury company activity.
Market Risks and Sideways Trading
Meanwhile, Jeff Mei, COO at BTSE, indicated that short-term traders are also reacting to market conditions, taking profits ahead of an impending tariff deadline on July 9. This tactical approach by public companies accumulating Bitcoin for their treasuries adds another layer to the complex trading landscape. Han Xu from HashKey Capital warns of upcoming macroeconomic data releases and policy decisions that may present risks for Bitcoin’s sideways trading, which has notably persisted despite over $3.2 billion in inflows into US spot Bitcoin ETFs.
In summary, Bitcoin’s price stagnation can be attributed to ongoing selling by long-term holders, providing an intriguing narrative in the wake of institutional buying. The emergence of new holders, particularly treasury firms, is a crucial development affecting supply dynamics. As traders balance profit-taking ahead of economic updates, Bitcoin continues to navigate a precarious trading range amid significant ETF inflows.
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