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In a recent video, Toby Cunningham, co-host of the Crypto Tips YouTube channel, discusses why Bitcoin has been hovering around the mid $65,000 range. Cunningham explains that this “crabbing” phase, where Bitcoin’s price remains stagnant, has led many to speculate about the reasons behind it. According to Toby Cunningham, understanding the underlying factors can provide clarity and help in making informed decisions.
Cunningham points out that Bitcoin has been within this range for approximately 62 days. Toby Cunningham notes that historical data suggests this period of stagnation might extend further before a significant movement occurs. While some attribute the current price action to factors like the German government selling off Bitcoin or regulatory investigations into companies like Jump Trading, Cunningham asserts these are not the primary drivers.
A crucial element influencing Bitcoin’s price, according to the crypto analyst, is the high level of open interest, which indicates substantial leverage in the system. Cunningham points out that over the past four months, leverage has remained high, making the market susceptible to manipulation by large players, or “whales.” He believes these entities can significantly influence price movements due to the leverage they can exert.
Cunningham frequently criticizes the Federal Reserve and its control over the financial system. He emphasizes that the Federal Reserve, an unelected body, exerts considerable influence over currency creation and interest rates.
Despite the current stagnant market, Cunningham highlights that smart whales are making significant moves. He cites an example of a whale recently purchasing 570 Bitcoin worth over $430 million, indicating confidence in the long-term value of Bitcoin. This activity, he suggests, implies that while the broader market sentiment may be bearish or uncertain, some large investors see this as an accumulation phase.
Cunningham refers to Kelly Kellam’s analysis that Bitcoin has been in this post-halving range for 62 days, with historical ranges extending from 40 to 150 days. Cunningham predicts the current phase might extend further, given the unique nature of this bull market. He advises investors to remain patient and focus on the fundamentals of Bitcoin rather than getting swayed by short-term price movements.
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