As a seasoned crypto investor with several years of experience under my belt, I’ve seen my fair share of market fluctuations and price movements. Bitcoin’s current situation is nothing new to me, and I understand that the lack of progress above its all-time high (ATH) is causing some frustration for many investors.
Bitcoin‘s value hovers around the $71,000 threshold, failing to surpass its previous record high of $73,738 reached a few months back. This level was attained just a few days ago, having been below $70,000 not long before. The price trend has been sluggish despite an ongoing nineteen-day influx of Bitcoin ETF investments. Observers are puzzled as to why bitcoin isn’t exceeding its recent record high in light of the robust ETF demand.
In the United States and select other countries, Bitcoin Exchange-Traded Funds (ETFs) currently control more than 5% of the total bitcoin in circulation, with approximately $15 billion in accumulated investments. However, the surge in ETF inflows does not solely account for the recent stagnancy in bitcoin prices. The impact of this trend is limited to a handful of countries, and it’s insufficient to ignite a significant price rally on its own. To realize the anticipated effects on bitcoin’s price, it is essential to introduce Bitcoin ETFs to investors in various other markets.
As a researcher studying financial markets, I can tell you that while Exchange-Traded Funds (ETFs) are a popular investment product, they are not the only type out there. Futures and options are other derivatives that play significant roles in driving prices of underlying assets.
As a market analyst, I’ve observed that one reason bitcoin has yet to reach its all-time high (ATH) is due to the significant liquidation occurring among long-term investors. These investors have held onto their bitcoins for at least two years and are now choosing to sell in order to secure profits. This selling pressure is hindering the asset’s rapid price increase.
The impact of the halving has yet to be fully felt, and it may not become apparent until late in this year. Historically, Bitcoin’s price has surged following a halving event, reaching new heights that surpassed previous bull market peaks. Therefore, those anticipating the halving’s effects on prices should remain patient and wait a few more months to observe the outcome.
Image by Be Ba from Pixabay
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2024-06-07 21:04