Why Bitcoin Hasn’t Hit $100,000 Yet: Insights from Crypto Analyst Charles Edwards
Cryptocurrency analyst and founder of Capriole Investments, Charles Edwards, recently took to social media platform X to share his perspective on why Bitcoin has not yet reached the $100,000 mark. Edwards identified key factors that he believes will drive Bitcoin’s price higher in the coming months.
Why Haven’t We Hit $100,000 Yet?”
In a detailed thread on X, Charles Edwards discussed the reasons he sees as preventing Bitcoin from reaching the long-anticipated $100,000 price level. Despite the approval of Bitcoin ETFs by the SEC in January, Bitcoin has only increased by 50% since then. With Bitcoin trading just above $71,000 at the time of his analysis, many are wondering why the price hasn’t soared higher.
Key Factors for Future BTC Price Surge
Firstly, Edwards highlighted the significant resistance posed by long-term holders selling their Bitcoin. According to his analysis, the proportion of wallets holding Bitcoin for more than two years has decreased from an all-time high of 57% in December 2023 to 54% today. While this 3% drop may seem small, it actually represents 630,000 BTC—three times the total Bitcoin purchased by US Bitcoin ETFs since January.
The second factor Edwards pointed out is that the market has yet to fully experience the impact of the recent Bitcoin halving. In April, the event cut Bitcoin’s daily issuance by 50%. Edwards believes that over the next year, the delta between the Bitcoin purchased by ETFs and the Bitcoin mined will widen significantly. Financial institutions need time to assess the situation and allocate funds to Bitcoin purchases, suggesting that spot ETFs will likely lead Bitcoin buying for the remainder of the year.
Overall, Edwards identified three critical drivers necessary for a sharp increase in Bitcoin’s price: a rise in the average daily buying by ETFs, a reduction in sales by long-term holders, and growth in US liquidity.
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In summary, while Bitcoin has made significant gains, Edwards believes that these key factors must align to propel Bitcoin towards the $100,000 milestone. His insights offer a nuanced understanding of the current market dynamics and what it may take for Bitcoin to achieve new highs.
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