Renowned cryptocurrency analyst Charles Edwards recently discussed why Bitcoin has not yet surpassed the $100,000 mark, shedding light on key factors influencing its price movement.
One significant factor Edwards highlighted was the impact of US Bitcoin ETFs, which have acquired a substantial 200% of newly mined Bitcoins since their launch in mid-January. Despite Bitcoin’s price increasing by 50% to $71,000, many are puzzled by the lack of further growth.
Edwards pointed out a significant challenge the market faces, which is the selling off of long-term wallets. The percentage of ‘Hodlers’ holding Bitcoin for over two years has decreased from 57% in December 2023 to 54% currently, representing a sizable amount of BTC being sold.
Additionally, Edwards discussed the effects of the BTC halving, predicting a widening gap between ETF consumption and Bitcoin issuance next year. He also mentioned that institutional processes for ETF investments are ongoing, suggesting more inflows are on the horizon.
Considering the time of year, Edwards noted that June is typically a quieter period for the market, with many large asset managers adopting a risk-off approach. He also highlighted the importance of USD liquidity, which has remained flat since the peak in March.
To see a significant price increase, Edwards suggested looking out for higher ETF purchases, reduced long-term wallet sales, and growth in US liquidity. Despite the current challenges, Edwards remains optimistic that these conditions could materialize in the coming months, potentially leading to Bitcoin hitting the elusive $100,000 mark.
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