Key Takeaways
- Analyst Charles Edwards says long-term Bitcoin holders are selling to institutions, keeping prices stagnant despite ETF inflows.
- A new cohort of six-month holders, including treasury companies, is absorbing the Bitcoin supply unloaded by original holders.
- Bitcoin remains range-bound between $102,000 and $110,000 amid continued inflows to spot ETFs and increased treasury activity.
Capriole Investments founder Charles Edwards explained that Bitcoin’s price growth has stalled as original long-term holders continue to sell into institutional demand since the launch of spot Bitcoin ETFs in January 2024.
Edwards stated:
“People are wondering why Bitcoin has been stuck at $100K so long, despite the institutional FOMO.”
He attributed this stagnation to Bitcoin OGs “dumping on Wall Street” and reducing their positions.
Edwards highlighted that the six-month holder cohort—largely made up of new Bitcoin treasury companies—has absorbed the Bitcoin unloaded by long-term holders over the past 1.5 years.
“The amount of BTC acquired in the last two months by this cohort has completely consumed all of the BTC unloaded by LTHs over the last 1.5 years.”
Treasury firms and ETF narrative
Edwards suggested these treasury companies are creating a “flywheel buying frenzy” that could overshadow the ETF narrative.
Recent entrants include Cardone Capital, ProCap, Panther Metals, and Green Minerals, all adding Bitcoin to their treasuries.
Short-term profit taking and market reaction
Jeff Mei, BTSE COO, noted traders are taking profits ahead of the July 9 tariff deadline, with more public companies accumulating Bitcoin for their treasuries.
Han Xu of HashKey Capital pointed to upcoming US macroeconomic data and policy decisions as key market risks.
Sideways trading persists
Bitcoin has traded between $102,000 and $110,000 since early May, despite over $3.2 billion in inflows to US spot Bitcoin ETFs and a steady rise in treasury company holdings.
