Despite strong institutional demand and steady inflows, Bitcoin has struggled to break past the $100,000 mark in recent weeks. This raises questions about what’s causing this price stagnation.
Analyzing Bitcoin’s performance, Capriole Investments founder Charles Edwards suggests the sideways action reflects a significant rotation between long-term holders and new institutional buyers.
Edwards believes many early Bitcoin adopters, the “OGs,” have been selling off their holdings since the launch of spot exchange-traded funds (ETFs) in January, essentially “dumping” large portions of their Bitcoin onto Wall Street buyers.
“People are wondering why Bitcoin has been stuck at $100K for so long,” Edwards wrote in a June 29 X post. “It’s because Bitcoin OGs have been dumping on Wall Street since the ETF launch.”
Edwards highlights that while ETF inflows have been substantial, much of that liquidity has been absorbed by heavy selling from these early holders cashing out at high prices. This increased supply pressure has contributed to the current price stagnation.
However, a new class of buyers could potentially spark a breakout.
Will Corporate Bitcoin Buys Trigger a Surge?
While long-term holders have been exiting, Edwards notes the emergence of corporate treasury allocators as new buyers.
Recently, numerous institutions and even governments worldwide have begun to view Bitcoin as a reserve asset, building strategic treasuries focused on long-term accumulation. This shift in investor profiles is now driving what Edwards describes as a “flywheel” effect – a steady, conviction-driven buying pattern that reinforces price support and attracts further institutional interest.
Key Takeaway: The potential for corporate Bitcoin adoption to offset selling pressure from early adopters could be a catalyst for a future price increase.
