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Key Reason Why Bitcoin Price Has Not Topped $70K Named by Top Trader

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Sun, 9/06/2024 - 12:35
Key Reason Why Bitcoin Price Has Not Topped $70K Named by Top Trader
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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 is yet to decisively break the $70,000 level.

In mid-May, van Lagen noted that the distribution of long-term Bitcoin holders to short-term ones was already in "full swing." This assumption is based on recent on-chain data that shows the roll over in coins that were held longer than 12 months.

"Parabolic" price discovery

Van Lagen has stated that previous distributions of this kind led to "parabolic" price discoveries at first. These price discoveries would be followed by prolonged bear markets.

Despite Bitcoin failing to gain a footing above the crucial $70,000 level, the consensus appears to be that the ongoing bull run is far from over.

As reported by U.Today, Galaxy Digital CEO Mike Novogratz has predicted that the price of the bellwether cryptocurrency could potentially reach $100,000 by the end of the year if it manages to surpass the major resistance area around $73,000 in the near future.

Both Fundstrat co-founder Tom Lee and prominent commodity trader Peter Brandt see the price of Bitcoin potentially peaking at $150,000 during this cycle.

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Bitcoin ETFs are on roll

U.S.-based spot exchange-traded funds (ETFs) have managed to record 19 days of consecutive inflows. As reported by U.Today, these products recorded the second-largest inflows ever ($880 million) on Tuesday.

Related

According to leading analyst Eric Balchunas, Bitcoin ETFs are showing impressive staying power despite their volatile performance.

Throwing wrench in works

Despite highly impressive ETF flows, the Bitcoin price plunged on Friday following the release of U.S. jobs data. The number of jobs added in May was much higher than expected. The strength of the labor market will likely dissuade the U.S. Federal Reserve from speeding up rate cuts. Such a scenario will not be beneficial for risk assets like Bitcoin.

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