Bitcoin
Main reason why Bitcoin price didn’t exceed $70K, named by top trader
Alex Dovbnya
This could be the main reason why Bitcoin price is struggling to reclaim the $70,000 level
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According to trader Gert van Lagen, long-term Bitcoin holders distributing their acquired coins to new ETF holders is the main reason why the leading cryptocurrency by market capitalization has not yet decisively broken the $70,000 level.
In mid-May, van Lagen noted that the distribution from long-term to short-term Bitcoin holders was already “in full swing.” This assumption is based on recent network data showing the rollover of coins held for more than 12 months.
“Parabolic” Price Discovery
Van Lagen stated that previous distributions of this type initially led to “parabolic” price discoveries. These price discoveries would be followed by prolonged bear markets.
Despite Bitcoin failing to position itself above the crucial $70,000 level, the consensus appears to be that the ongoing bull run is far from over.
As reported by U.TodayGalaxy Digital CEO Mike Novogratz predicted that the leading cryptocurrency’s price could potentially reach $100,000 by the end of the year if it manages to overcome the main resistance area around $73,000 in the near future.
Both Fundstrat co-founder Tom Lee and prominent commodities trader Peter Brandt see the price of Bitcoin potentially peaking at $150,000 during this cycle.
Bitcoin ETFs are on the rise
US-based spot exchange-traded funds (ETFs) managed to record 19 days of consecutive inflows. As reported by U.Todaythese products recorded the second-largest inflows ever ($880 million) on Tuesday.
According to top analyst Eric Balchunas, Bitcoin ETFs are delivering impressive results stay strong despite its volatile performance.
Throwing a wrench into the works
Despite highly impressive ETF inflows, the price of Bitcoin plummeted on Friday following the release of US employment data. The number of jobs created in May was much higher than expected. Labor market strength will likely dissuade the US Federal Reserve from accelerating rate cuts. Such a scenario will not be beneficial for risky assets like Bitcoin.
About the author
Alex Dovbnya
Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience covering everything related to the booming industry – from price analysis to Blockchain disruption. Alex has authored over 1,000 stories for U.Today, CryptoComes, and other fintech media outlets. He is particularly interested in regulatory trends around the world that are shaping the future of digital assets. He can be reached at alex.dovbnya@u.today.