The world's largest digital currency has been stuck around the $60,000-72,000 mark for more than 10 weeks as "sharks" need time to collect goods, and individual investors prioritize taking profits.
Data from Cointelegraph Markets Pro and TradingView shows that the price of Bitcoin $BTC this morning dropped nearly 3.2% to about 67,155 USD. Glassnode's report, published in late May, noted that Bitcoin's recent weekly, monthly, and quarterly performance has been down compared to previous cycles.
The world's largest cryptocurrency struggles to turn its previous all-time high into support for a new rally. Historically, BTC needs 4-8 weeks of consolidation around the previous cycle's high for a significant upside wave to appear. But currently, the market price of this coin has been stable for a long time, despite the halving event (which reduces the reward for miners by half) taking place or the flow of money pouring into the market is increasing.
One of the main reasons, according to CoinTelegraph, is that "sharks" are accumulating Bitcoin. According to CoinDesk statistics as of the end of May, spot Bitcoin ETFs listed in the US are holding more than 850,700 units. This is a record high, worth more than 58.2 billion USD.
The capital flows into the above funds show that institutional investors are tending to accumulate goods and need to create a quiet period for the market to support their accumulation trend. The two "sharks" BlackRock and Fidelity - the world's largest asset managers - both offer spot Bitcoin ETFs. This is considered a means of paving the way for large financial institutions to invest in cryptocurrencies without directly owning them.
The sideways movement of BTC corresponds to the trend of money flowing from private custody to exchanges. This is also a sign reflecting the accumulation of "shark". Data tracked by IntoTheBlock shows that wallets holding Bitcoin worth between $100,000 and $10 million increased last quarter.
BTC recorded a price of 73,750 USD in mid-March. This was the first time this currency reached an all-time high, taking place before the halving event. That is also one of the reasons why Bitcoin is quiet even though the halving took place nearly two months ago. CoinTelegraph believes that this halving has been overshadowed by news about Bitcoin spot ETFs. Therefore, the impact of the event also cooled.
JP Morgan analysts state that Bitcoin will not increase after the halving event because of the completion of the previous valuation cycle. Goldman Sachs added that for Bitcoin to increase in price like previous halvings, macroeconomic conditions need to support investors so they have a risk-taking mentality.
However, many experts say that the cryptocurrency market is not only dominated by "sharks". James Van Straten - analyst at Crypto Slate, believes that individual investors still dominate. "They are much bigger than ETFs," he emphasized.
The fact that "sharks" are collecting goods also proves that individual investors are holding a large amount of Bitcoin in their hands, enough to sell to ETF funds. According to experts, Bitcoin has increased 60% since the beginning of the year, the profitability level meets the expectations of the majority, so individual investors are taking profits. This puts pressure on Bitcoin prices.
According to Bloomberg analyst Eric Balchunas, leveraged BTC holders may be selling, reducing the impact of ETF inflows. He observed that, every time ETFs recorded net inflows, there was strong selling force in the market. The balance between the two sides has caused Bitcoin to stand still around the price range of 60,000-72,000 USD all this time.
Tieu Gu (according to CoinTelegraph, TradingView)
Source: Vnexpress.net