Bitcoin

Impact

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<h4><strong>As of June 13th, Bitcoin has been consolidating within a narrow range, hovering around $67,500. </strong></h4> 
<p>This sideways movement has persisted for about three weeks, with the cryptocurrency oscillating between $72,000 (acting as resistance) and $66,350 (acting as support) since May 21. Let’s explore more about what is happening with Bitcoin’s Price.</p> 
<h5><strong>Factors Contributing to Bitcoin’s Price Stagnation</strong></h5> 
<p>Despite multiple attempts, Bitcoin has struggled to surpass its previous all-time high of $73,800. One of the primary reasons for Bitcoin’s stagnant price is the prevalence of cash-and-carry arbitrage strategies.</p> 
<p><img decoding="async" class="wp-image-143016 aligncenter" src="https://www.altcoinbuzz.io/wp-content/uploads/2024/06/vxcfdgfgdfggf-300x144.png" alt="" width="579" height="278" srcset="https://www.altcoinbuzz.io/wp-content/uploads/2024/06/vxcfdgfgdfggf-300x144.png 300w, https://www.altcoinbuzz.io/wp-content/uploads/2024/06/vxcfdgfgdfggf-768x368.png 768w, https://www.altcoinbuzz.io/wp-content/uploads/2024/06/vxcfdgfgdfggf-875x420.png 875w, https://www.altcoinbuzz.io/wp-content/uploads/2024/06/vxcfdgfgdfggf-696x334.png 696w, https://www.altcoinbuzz.io/wp-content/uploads/2024/06/vxcfdgfgdfggf.png 963w" sizes="(max-width: 579px) 100vw, 579px"></p> 
<h6 style="text-align: center;"><strong>Source: <a href="https://www.tradingview.com/symbols/BTCUSD/?exchange=BITSTAMP" target="_blank" rel="noopener">Tradingview</a></strong></h6> 
<p>Investors buy Bitcoin in the spot market and sell Bitcoin futures when prices are higher.&nbsp;It allows them to maintain a market-neutral stance.</p> 
<p>This strategy has gained traction, especially with the rise of U.S.-based spot Bitcoin ETFs. These ETFs are designed to provide exposure to Bitcoin’s spot price. <a href="https://x.com/cryptocom_rni/status/1801233525624201520" target="_blank" rel="noopener">Inflows</a> totaled $15.51 billion by June 13, up from $870 million at launch.</p> 
<p><img decoding="async" class="wp-image-143017 aligncenter" src="https://www.altcoinbuzz.io/wp-content/uploads/2024/06/vcbvcnvfdgsfs-248x300.png" alt="" width="442" height="535" srcset="https://www.altcoinbuzz.io/wp-content/uploads/2024/06/vcbvcnvfdgsfs-248x300.png 248w, https://www.altcoinbuzz.io/wp-content/uploads/2024/06/vcbvcnvfdgsfs-347x420.png 347w, https://www.altcoinbuzz.io/wp-content/uploads/2024/06/vcbvcnvfdgsfs.png 396w" sizes="(max-width: 442px) 100vw, 442px"></p> 
<h6 style="text-align: center;"><strong>Source: <a href="https://farside.co.uk/?p=997" target="_blank" rel="noopener">Farside</a></strong></h6> 
<p>In parallel, hedge funds have taken substantial short positions in both <a href="https://www.cmegroup.com/markets/cryptocurrencies/micro-cryptocurrency-futures-and-options.html" target="_blank" rel="noopener">CME Bitcoin and Micro CME Bitcoin futures markets</a>. With a total of $6.33 billion and $97 million, respectively. This activity coincides with a notable increase in open interest and market dominance.</p> 
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      <p>These dynamics reflect a cautious approach from institutional investors. They stabilize prices by balancing ETF buying and futures selling pressures.</p> 
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<p><img decoding="async" class="wp-image-143019 aligncenter" src="https://www.altcoinbuzz.io/wp-content/uploads/2024/06/cvxdfsfeewr-300x114.jpg" alt="" width="627" height="238" srcset="https://www.altcoinbuzz.io/wp-content/uploads/2024/06/cvxdfsfeewr-300x114.jpg 300w, https://www.altcoinbuzz.io/wp-content/uploads/2024/06/cvxdfsfeewr-768x291.jpg 768w, https://www.altcoinbuzz.io/wp-content/uploads/2024/06/cvxdfsfeewr-696x264.jpg 696w, https://www.altcoinbuzz.io/wp-content/uploads/2024/06/cvxdfsfeewr.jpg 956w" sizes="(max-width: 627px) 100vw, 627px"></p> 
<h6 style="text-align: center;"><strong>Source: <a href="https://insights.glassnode.com/the-week-onchain-week-24-2024/" target="_blank" rel="noopener">Glassnode</a></strong></h6> 
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      <h5><strong>Impact of ETF Inflows on Bitcoin’s Market Dynamics</strong></h5> 
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<p>Furthermore, Bitcoin’s price stability is reinforced by the consistent holdings of large <a href="https://www.altcoinbuzz.io/?s=bitcoin+whale" target="_blank" rel="noopener">Bitcoin whales</a>. These entities, holding substantial Bitcoin amounts, reduce volatility by maintaining positions without active trading. This stable accumulation by whales acts as a cushion against sudden price fluctuations.</p> 
<p><img decoding="async" class="wp-image-143021 aligncenter" src="https://www.altcoinbuzz.io/wp-content/uploads/2024/06/vcsdgfhgthyt-300x149.jpg" alt="" width="622" height="309" srcset="https://www.altcoinbuzz.io/wp-content/uploads/2024/06/vcsdgfhgthyt-300x149.jpg 300w, https://www.altcoinbuzz.io/wp-content/uploads/2024/06/vcsdgfhgthyt-768x382.jpg 768w, https://www.altcoinbuzz.io/wp-content/uploads/2024/06/vcsdgfhgthyt-845x420.jpg 845w, https://www.altcoinbuzz.io/wp-content/uploads/2024/06/vcsdgfhgthyt-696x346.jpg 696w, https://www.altcoinbuzz.io/wp-content/uploads/2024/06/vcsdgfhgthyt-324x160.jpg 324w, https://www.altcoinbuzz.io/wp-content/uploads/2024/06/vcsdgfhgthyt.jpg 935w" sizes="(max-width: 622px) 100vw, 622px"></p> 
<h6 style="text-align: center;"><strong>Source: <a href="https://insights.glassnode.com/the-week-onchain-week-24-2024/" target="_blank" rel="noopener">Glassnode</a></strong></h6> 
<p>Lastly, technical patterns in Bitcoin’s price chart also play a role in reinforcing the current sideways trend. The repeated attempts to break above $72,000 have been met with resistance. This forms a technical barrier that traders and algorithms respond to, solidifying the consolidation phase further.</p> 
<p><a href="https://www.patreon.com/altcoinbuzz" target="_blank" rel="noopener"><img decoding="async" class="alignnone size-full wp-image-123700" src="https://www.altcoinbuzz.io/wp-content/uploads/2023/09/Alpha_website_leaderboard-banner.jpg" sizes="(max-width: 1197px) 100vw, 1197px" srcset="https://www.altcoinbuzz.io/wp-content/uploads/2023/09/Alpha_website_leaderboard-banner.jpg 1197w, https://www.altcoinbuzz.io/wp-content/uploads/2023/09/Alpha_website_leaderboard-banner-300x37.jpg 300w, https://www.altcoinbuzz.io/wp-content/uploads/2023/09/Alpha_website_leaderboard-banner-1024x127.jpg 1024w, https://www.altcoinbuzz.io/wp-content/uploads/2023/09/Alpha_website_leaderboard-banner-768x95.jpg 768w, https://www.altcoinbuzz.io/wp-content/uploads/2023/09/Alpha_website_leaderboard-banner-696x86.jpg 696w, https://www.altcoinbuzz.io/wp-content/uploads/2023/09/Alpha_website_leaderboard-banner-1068x132.jpg 1068w" alt="" width="1197" height="148"></a></p> 
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<h6><strong>Disclaimer</strong></h6> 
<p>The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted risk tolerance levels of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses you may incur due to any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.</p> 
<p>The post <a href="https://www.altcoinbuzz.io/cryptocurrency-news/possible-reasons-for-bitcoins-price-stagnation/">Possible Reasons for Bitcoin’s Price Stagnation</a> appeared first on <a href="https://www.altcoinbuzz.io">Altcoin Buzz</a>.</p>

Possible Reasons for Bitcoin’s Price Stagnation

Altcoin Buzz

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