Bitcoin, the world’s largest digital currency, has been trading in a range of $60,000-72,000 for over 10 weeks as institutional investors and individual investors take profits. The price of Bitcoin dropped by nearly 3.2% to around $67,155 this morning, indicating that the market is struggling to turn its previous all-time high into support for a new rally.
One of the main reasons for Bitcoin’s sideways movement is the accumulation of Bitcoin by institutional investors, also known as “sharks.” US-listed Bitcoin spot ETFs were reported to hold a record number of units by the end of May, indicating a growing interest from institutions in acquiring Bitcoin. However, the accumulation trend of these institutional investors requires a quiet period in the market to support their activities.
Data shows that there is an increase in wallets holding Bitcoin in the range of $100,000 to $10 million, which indicates that individual investors are also heavily involved in the market and may be taking profits. This puts pressure on Bitcoin prices and keeps it trading in the same price range for an extended period.
Experts suggest that while institutional investors are accumulating Bitcoin, individual investors still dominate the market. The competition between the two sides has kept Bitcoin trading in the same price range for an extended period. Analysts believe that while institutional inflows affect the market, individual selling is also a significant factor in determining the price of Bitcoin.
The impact of recent events like halving on Bitcoin’s price has been overshadowed by news about US-listed spot ETFs. For Bitcoin to see significant price increases, macroeconomic conditions need to support investors and their risk-taking mindset. The balance between institutional and individual investors in the market is crucial in determining Bitcoin’s future price movements.
In conclusion, while there have been several factors contributing to bitcoin’s sideways movement over recent months, including institutional accumulation and individual profit-taking pressure; experts predict that significant price increases will only occur when macroeconomic conditions align with investor risk appetite.
