Bitcoin has once again failed to surpass the $100,000 threshold, despite strong institutional demand. This raises questions regarding the causes of the current stagnation.
Long-Term Holders and ETF Influence
Capriole Investments founder Charles Edwards noted that Bitcoin's current sideways action may be a result of a major rotation between long-term holders and new institutional buyers.
Many long-term holders, referred to as 'OGs', have been offloading their positions since the launch of exchange-traded funds (ETFs) in January. Edwards claims that heavy selling on Wall Street has created supply pressure, contributing to the present price stagnation.
New Corporate Buyers
Despite the exit of long-term holders, Edwards pointed out that a new class of buyers is stepping in as corporate treasury allocators. In recent months, several institutions and governments around the world have begun turning to Bitcoin as a reserve asset, building strategic treasuries focused on long-term accumulation.
This shift in investor composition is now driving what Edwards describes as a 'flywheel' effect, where steady purchases reinforce price support and attract further institutional interest.
Growth Prospects for Bitcoin
On-chain data shows that the number of Bitcoin holders for over six months has risen sharply in the past two months. This group has been in a strong accumulation phase, absorbing more BTC than long-term holders sold over the past 18 months.
The consistent pace of accumulation suggests growing conviction among newer market participants. Historically, similar spikes in long-term holding have preceded upward price moves, and if this trend continues, it could signify a bullish shift for Bitcoin.
Thus, Bitcoin's current stagnation highlights the significance of the dynamics between long-term holders and new corporate buyers, which may indicate potential future changes in the market.
