According to trader Gert van Lagen, long-term Bitcoin holders distributing their acquired coins to new ETF holders is the key reason why the leading cryptocurrency by market capitalization has not yet decisively surpassed the $70,000 level.
According to trader Gert van Lagen, long-term Bitcoin holders distributing their acquired coins to new ETF holders is the key reason why the leading cryptocurrency by market capitalization has not yet decisively surpassed 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 on-chain data showing the turnover of coins that were held for more than 12 months.
“Parabolic” price discovery
Van Lagen claims that prior distributions of this type initially led to “parabolic” price discoveries. These price discoveries would be followed by prolonged bear markets.
Even though Bitcoin failed to gain ground above the crucial $70,000 level, the consensus seems to be that the ongoing bull run is far from over.
As reported by U.TodayMike Novogratz, CEO of Galaxy Digital, has predicted that the price of the leading cryptocurrency could reach $100,000 by the end of the year if it manages to break through the main resistance zone of around $73,000 in the near future.
Both Fundstrat co-founder Tom Lee and prominent commodities trader Peter Brandt see Bitcoin price potentially reaching a high of $150,000 during this cycle.
Alex DovbnyaBitcoin ETFs are on the way
US-based spot exchange-traded funds (ETFs) have managed to record 19 days of consecutive inflows. As reported by U.TodayThese products recorded the second largest inflows in history on Tuesday ($880 million).
Alex DovbnyaAccording to leading analyst Eric Balchunas, Bitcoin ETFs are showing impressive results staying power despite its volatile performance.
Throwing key in works
Despite impressive ETF flows, Bitcoin price plummeted on Friday following the release of US employment data. The number of jobs created in May was much higher than expected. The strength of the labor market will likely deter the US Federal Reserve from accelerating rate cuts. Such a scenario will not be beneficial for risk assets like Bitcoin.
