Despite reaching this level roughly two weeks ago, Bitcoin's price has mostly moved downward or sideways, reflecting levels seen three months ago. This nearly 7% drop is due to various factors rather than a single major event.

One reason for the stagnation, according to analysts, is the sluggish performance of 11 spot Bitcoin exchange-traded funds (ETFs). Interest in these ETFs surged in January following their approval by the SEC. Data from CoinGlass shows that these ETFs now have a combined value exceeding $53 billion. However, most of the inflows happened during the first two months of their operation.

There was an inflow of $55.3 billion worth of assets into the funds by March 13, indicating a slowdown since then. Last week alone, net outflows reached $580.6 million.

Analysts also point to challenging mining conditions as another factor hindering Bitcoin's growth. Bitcoin's sharp rise was driven by anticipation of the April 19 halving, which cut the supply of newly issued coins by 50% from 6.25 to 3.125 per block. As a result, the hashrate (total computing power used for Bitcoin mining) has been fluctuating. It fell by 11% in the four weeks following the halving in April, briefly recovered, and then declined again.

Matthew Sigel, director of digital assets research at VanEck, described this as “typical” post-halving instability, with miners struggling to turn a profit as the cost per coin doubles.

Sigel predicts that this consolidation phase may persist, but he also foresees a significantly higher Bitcoin price during the U.S. elections in November. He noted that Bitcoin's recent performance is typical for a bull market, with price corrections of up to 20% following an all-time high being common. “An 11% decline is not a cause for concern,” Sigel added.

FalconX research manager David Lawant explained that the recent price drop could also be attributed to “relatively weak liquidity.” #BTC #bitcoin #altcoins #Cryptocurrencies #CryptoNewss