Crypto analyst and founder of the Capriole Investments fund Charles Edwards has taken to the X social media platform to share his take on why the world’s leading cryptocurrency Bitcoin has not reached the $100,000 level so far.
He named the key factors that he expects to propel the BTC price upwards within the coming few months.
“Why aren’t we at $100,000 yet?”
Charles Edwards published a thread on X to share the reasons which he believes to stand between Bitcoin and the much-anticipated $100,000 price mark at the moment. This price surge has not yet taken place despite the launch of the spot Bitcoin ETFs.
Why aren’t we at $100,000 yet?
US Bitcoin ETFs have acquired 200% of the Bitcoin mined since launch in mid-January.
At $71K, Bitcoin is up 50% since the ETFs launched, but many are asking why not more? pic.twitter.com/v86Aagvys4
— Charles Edwards (@caprioleio) June 7, 2024
So far, he stated, Bitcoin is only 50% up since January, when the SEC greenlighted the ETFs and many are wondering why BTC has not surged higher, Edwards pointed out. Bitcoin is changing hands slightly above $71,000 at the time of this writing.
Key factors for strong BTC rise in the future
First of all, Edwards shared, “we are battling against a bigger force – long-term holder selling.” According to his tweet, the number of long-term Bitcoin-holding wallets (those who have been holding for more than two years) has declined from the 57% all-time high reached in December 2023 to 54% today. Even though this is just a 3% drop and it may not look impressive, still, this comprises 630,000 BTC, which is also 300% of the total BTC supply that the Bitcoin ETFs have bought in the US since January.
The second reason shared by the analyst is that the market has not yet seen the true impact of the halving so far. In April, when the event took place, Bitcoin daily issuance plunged by 50%. Edwards believes that over the next year the delta between the ETFs purchasing Bitcoin and the BTC that is being mined will grow much wider. Financial institutions need time to review the situation and allocate funds for buying Bitcoin, therefore the spot ETFs are likely to remain leaders in BTC purchasing at least for this year, he says.
Overall, Edwards named three drivers he believes are necessary for Bitcoin to begin rising sharply. Those are higher average daily ETF buying, lower long-term holder selling, and growth in US liquidity.
