As a seasoned crypto investor with a keen interest in following market trends and analyzing the actions of industry experts, I find Charles Edwards’ perspective on Bitcoin’s lack of progress towards $100,000 intriguing. His thread on X provides valuable insights into the factors that could potentially influence BTC‘s price movement in the near future.
Charles Edwards, a crypto analyst and the founder of Capriole Investments, recently expressed his views on Bitcoins inability to reach the $100,000 mark on the popular social media platform X.
I’ve identified several crucial elements that I believe will drive Bitcoin’s price higher over the next few months.
“Why aren’t we at $100,000 yet?”
Charles Edwards recently discussed on X why he thinks Bitcoin has yet to reach the anticipated $100,000 price point, despite the introduction of Bitcoin spot ETFs.
As an analyst, I’ve been pondering over the question of why Bitcoin hasn’t reached $100,000 yet despite US Bitcoin ETFs having acquired twice as much Bitcoin as mined since their mid-January launch. With Bitcoin already up by 50% from its price at the ETF debut, one might expect a more significant price increase. However, it’s essential to consider various factors influencing this situation. For instance, market sentiment, regulatory environment, and overall macroeconomic conditions can all impact Bitcoin’s price trajectory. It’s an intriguing puzzle that calls for further analysis.
— Charles Edwards (@caprioleio) June 7, 2024
To date, Edwards noted, Bitcoin has risen by approximately 50% since the SEC’s approval of ETFs in January. Many are pondering why the cryptocurrency hasn’t experienced a more significant increase, with its current price hovering around $71,000.
Key factors for strong BTC rise in the future
Initially, Edwards mentioned that “we’re up against a formidable foe – the selling pressure from long-term Bitcoin holders.” He went on to explain in his tweet that the proportion of Bitcoin wallets holding for over two years has decreased from its peak of 57% in December 2023 to the current 54%. Although this represents a mere 3% decrease, it translates to approximately 630,000 BTC – three times more than the total amount of Bitcoin purchased by US-listed Bitcoin ETFs since January.
The analyst’s second argument is that the full effect of Bitcoin’s halving, which occurred in April, has yet to be felt by the market. Edwards anticipates that the difference between Bitcoin acquired through ETFs and mined Bitcoin will expand significantly over the next year. He explains that financial institutions require time to assess the situation and allocate resources for purchasing Bitcoin. Consequently, spot Bitcoin ETFs are expected to dominate BTC acquisitions in 2021.
As a researcher studying the dynamics of Bitcoin’s price movements, I identified three key factors that could potentially lead to significant price increases according to Edwards’ analysis: an uptick in the average daily purchasing volume through Exchange Traded Funds (ETFs), a decrease in long-term holder sell-offs, and an expansion of liquidity within the US market.
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2024-06-07 12:06