Bitcoin has surged back to the $63,000 mark today, yet the largest cryptocurrency continues to face resistance as it attempts to climb higher.
A key factor contributing to this struggle is the significant number of Bitcoin holders who purchased their assets between the current price and approximately $65,000.
You may have noticed Bitcoin facing repeated rejections as it attempts to move higher.
Here's why: 3.5 million addresses acquired Bitcoin between the current price and ~$65k, and they are currently holding at a loss.
In this uncertain market, these addresses generate… pic.twitter.com/cCGmZv2MHu
— IntoTheBlock (@intotheblock) May 14, 2024
These 3.5 million addresses are currently holding at a loss, creating substantial selling pressure as they reach their break-even point. For Bitcoin to achieve a true breakout, it must overcome this resistance at $65,000.
Adding to the complexity of the market, the US Government has become a notable holder of Bitcoin, now possessing around 1% of the total supply. This accumulation is largely due to the seizures of Bitcoin from incidents such as the Silk Road and Bitfinex hacks.
The US Government has emerged as a significant holder of #Bitcoin, with holdings now representing around 1% of the total supply. This accumulation primarily stems from the seizures of Bitcoin from Silk Road and Bitfinex hacks. Despite legal complexities, the government's cautious… pic.twitter.com/0GRUAK5NJG
— 🪶ALTCOIN DADDY 🇹🇹🇳🇬 {A.D}𓃵 (@Altcoin_daddy) May 14, 2024
Despite the legal challenges associated with these assets, the government’s cautious approach to selling them has effectively turned these holdings into long-term investments.
Occasional wallet rotations hint at preparations for future sales or the handling of new seizures, but for now, these assets remain largely untouched.
Two Consecutive Days Of Bitcoin Net Inflow Being Positive
In the realm of Bitcoin ETFs, net inflows on May 14, 2024, totaled $101 million, marking two consecutive days of positive net inflows.
Notably, the Grayscale Bitcoin Trust (GBTC) experienced a single-day outflow of $50.9 million after a day of zero flow, indicating some volatility among institutional investors. In contrast, the BlackRock Bitcoin ETF (IBIT) has seen no activity for the past 15 trading days.
🚨 $BTC #ETF Net Inflow May 14, 2024: +$101M!
• The net inflow has been positive for 2 trading days.
• #Grayscale ETF GBTC experienced a single-day outflow of $50.9M again after a day of zero flow.
• The single-day flow of #BlackRock ETF IBIT remains zero and has been… pic.twitter.com/T9btDfxqRe
— Spot On Chain (@spotonchain) May 15, 2024
Despite this stagnation, six out of eight other US Bitcoin ETFs recorded single-day inflows, with the ARKB ETF leading the pack with $133 million. These inflows suggest continued interest and confidence in Bitcoin ETFs, even as the market navigates its current challenges.
As Bitcoin strives to surpass the critical $65,000 resistance level, market dynamics, including significant government holdings and fluctuating ETF inflows, will play crucial roles in determining its trajectory. For now, investors are keeping a close eye on these developments, hoping for a decisive breakout.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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