Bitcoin Price Under Pressure Despite Massive ETF Inflows

Bitcoin (BTC) is showing surprising resilience below the $110,000 mark, despite a staggering $11 billion in ETF inflows last quarter. This has sparked debates on social media about whether the price is being intentionally suppressed by long-term holders and major investors.

Where Is the Bitcoin Demand?

In the second quarter alone, big treasury firms like Metaplanet and Strategy announced significant Bitcoin purchases, contributing to a cumulative ETF buy of 20.7K BTC—approximately 12.6% of the annual new mined supply. So, why hasn't Bitcoin skyrocketed in response?

Long-Term Holders Offloading Their Assets

Charles Edwards, founder of Capriole Investments, sheds light on this mysterious price stagnation. He suggests that OG Bitcoin holders are cashing out aggressively. "Since the launch of the ETF in January 2024, long-term holders have been selling off their positions on Wall Street," he explains.

Charts reveal a trend where holders with coins for over two years are dumping significantly, while those who acquired Bitcoin recently are absorbing more assets. This leads to a complex scenario where high demand does not translate to rising prices.

The Role of OTC Transactions

Some analysts believe that substantial transactions are happening off traditional exchanges through Over The Counter (OTC) desks. These deals, often hidden from public view, mean that the demand they generate may not have an immediate effect on market prices.

"Older coins are circulating again, but they’re moving OTC to large buyers like ETFs without influencing the price as much as you’d think," notes TXMC Trades.

Whales and Their Impact on Price

Despite the bullish sentiment surrounding ETFs, long-term holders continue to create downward pressure. Notably, cryptocurrency analyst Willy Woo highlighted that whales owning between 10K to 100K BTC have been selling since 2017 at prices between $0 and $800, potentially leading to drastic price effects.

Additionally, the number of whales controlling over 1K BTC has decreased from 2,114 in late May to 2,008, only to see mild recovery by the end of June, just after BTC peaked at $111K in May.

The Future of Bitcoin: Will It Break Through?

As retail and institutional interest continues to rise, the question remains: can Bitcoin break its current range? With the market in a tumultuous state, all eyes are on the next moves from these long-term holders and the broader economic climate. Will we see BTC soar or continue to tread water? Only time will tell.