Cryptocurrency

Bitcoin

Impact

<p style="text-align: justify">You can also read this news on BH NEWS: <a href="https://en.bitcoinhaber.net/bitcoin-faces-critical-obstacles" data-wpel-link="internal" rel="noopener noreferrer nofollow">Bitcoin Faces Critical Obstacles</a><br></p>
<p style="text-align: justify">Cryptocurrency analyst and founder of Capriole Investments, Charles Edwards, recently provided insight into <a href="https://en.bitcoinhaber.net/bitcoin-etfs-see-largest-withdrawal-ever" data-wpel-link="internal" rel="noopener noreferrer nofollow">Bitcoin</a>‘s price behavior, explaining why it has not yet achieved the $100,000 mark and identifying fundamental factors that could drive its price higher in the coming months.</p>
<h2 id="why-is-bitcoin-struggling-to-gain-momentum">Why Is Bitcoin Struggling to Gain Momentum?</h2>
<p style="text-align: justify">Despite the introduction of spot Bitcoin ETFs in the US and a 50% price increase since January, Bitcoin currently trades just above $71,000. Edwards outlined key issues, such as the selling pressure from <a href="https://finance.coin-turk.com/" rel="noopener noreferrer nofollow" target="_blank" data-wpel-link="exclude">long-term investors</a>, which are preventing significant price gains.</p>
<p style="text-align: justify">Edwards pointed out that the number of wallets holding Bitcoin for more than two years has decreased from 57% in December 2023 to 54% today. This 3% drop equates to 630,000 BTC, which is triple the amount purchased by US ETFs since January. This indicates that long-term holders are liquidating their assets, contributing to downward price pressure.</p>
<h2 id="how-will-halving-impact-bitcoin-s-price">How Will Halving Impact Bitcoin’s Price?</h2>
<p style="text-align: justify">Edwards also noted the market’s delayed response to Bitcoin’s block reward halving in April, which halved the cryptocurrency’s daily issuance. He anticipates a widening gap between the amount of BTC purchased by ETFs and the amount issued, suggesting an impending supply shock.</p>
<p style="text-align: justify">Additionally, Edwards mentioned that financial institutions require time to evaluate the market and allocate funds for Bitcoin investments, indicating that spot ETFs will continue to be significant BTC purchasers throughout the year.</p>
<h2 id="critical-factors-for-bitcoin-price-increase">Critical Factors for Bitcoin Price Increase</h2>
<p style="text-align: justify">Edwards identified three critical factors necessary for a strong Bitcoin price rise:</p>
<ul>
 <li>Increased average daily ETF purchases to sustain demand for Bitcoin.</li>
 <li>Reduced selling pressure from long-term holders, decreasing the Bitcoin supply available for sale.</li>
 <li>Growth in US liquidity, which will provide more investment capital for Bitcoin.</li>
</ul>
<p style="text-align: justify">These factors are essential to create a conducive environment for Bitcoin’s price ascent, ensuring robust and sustained growth.</p>
<h5><span style="font-weight:bold;font-size:16px">The post first appeared on BH NEWS: </span> <a href="https://en.bitcoinhaber.net/bitcoin-faces-critical-obstacles" data-wpel-link="internal" rel="noopener noreferrer nofollow">Bitcoin Faces Critical Obstacles</a></h5>

Bitcoin Faces Critical Obstacles

Table of Contents

BH NEWS

Other articles published on Jun 7, 2024

Data Dive: Why Almost Every Bitcoin Holder is Winning Right Now

Top 7 cheapest cryptocurrency in the world to buy in 2024

Effective Asset Hedging Strategies

GameStop's Roaring Kitty posts first livestream in 3 years— price reacts

Here Comes the Future of Decentralized Computing with io.net (IO)!

Kaspa Analyst Explains Real Reason Behind KAS Hitting New ATH: Highlights Upcoming Major Exchange...

Join our free newsletter for daily crypto updates!