Bitcoin has rebounded to the $108,000 level following significant geopolitical turbulence last week, reinforcing its status as a reliable store of value. Many analysts believe that the leading cryptocurrency is poised to set new price records. However, BTC appears to be stuck at its current valuation for the time being. Experts have highlighted several key reasons for this market behavior.
Current Market Performance of Bitcoin
Bitcoin continues to trade above $108,000 as of today. Over the past 24 hours, the cryptocurrency's price increased by a marginal 0.3%, indicating relative stability.
Major cryptocurrencies by market capitalization are also showing signs of equilibrium. Within the top ten digital assets, Ethereum recorded the most noticeable uptick, rising by 1.3% over the day. Dogecoin followed with a 1% gain.
According to Charles Edwards, founder of Capriole Investments, the upward momentum of Bitcoin has been tempered by the actions of long-term investors. These holders are divesting from coins accumulated over time, creating consistent selling pressure as they regularly liquidate portions of their BTC holdings.
Here is the analyst’s commentary, as reported by Cointelegraph.
People are wondering why Bitcoin has been stuck around $100,000 for so long, despite the institutional fear of missing out.
Edwards attributes this situation to early Bitcoin adopters who have held the asset for many years. These investors have been "dumping coins on Wall Street" and "liquidating their positions" ever since the launch of the spot Bitcoin ETFs in January 2024.
The expert also shared a chart illustrating the growth trends among Bitcoin holders. It clearly shows an increase in coins held by market participants who have entered over the past six months.
This category includes corporations adopting Bitcoin as a long-term reserve asset, inspired by strategies like those of Michael Saylor. Examples of such firms are GameStop, ProCap, Phoenix Digital Assets, and Sixty-Six Capital Inc.
Edwards further noted:
The volume of BTC acquired by this group over the past two months has completely absorbed all the selling from long-term investors over the last year and a half.
He believes that new companies building their own Bitcoin reserves will initiate an avalanche of acquisitions, creating a snowball effect. Ultimately, institutional giants are expected to exert a much greater influence on the digital asset market than U.S. spot crypto ETFs.
We are clearly in the hottest phase now—waves of imitators are entering the market.
Recent examples of companies joining the Bitcoin acquisition trend include real estate giant Cardone Capital, venture firm ProCap (planning to go public), mining exploration company Panther Metals, and Norwegian deep-sea extraction firm Green Minerals. All these market participants recognize Bitcoin's value and are allocating capital to build corresponding reserves.
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What Crypto Investors Are Anticipating
Many cryptocurrency investors are taking short-term profits as they await the deadline for Trump's import tariffs, scheduled for July 9. They anticipate that several countries may fail to resolve disputes with the U.S. government, potentially leading the president to reinstate large-scale import duties and trigger market panic.
This perspective was shared by Jeff Mei, Operations Lead at the BTSE cryptocurrency exchange.
They are hedging against a potential price collapse if trade negotiations fall apart. Although accumulating a sufficient Bitcoin position takes time, we expect market stabilization over the next year as new long-term holders emerge.
Mei emphasized that an increasing number of major players are choosing Bitcoin.
Meanwhile, Han Xu, Investment Lead at HashKey Capital, reminded investors of upcoming U.S. macroeconomic data releases and updates on tariff policy scheduled for this week. Many market participants are evidently exercising caution in their investments.
Updates on trade agreements ahead of mutual tariff implementations, as well as progress on Trump’s budget bill, are key risks that must be resolved before the bull run continues.
Should the market face unpleasant surprises, it could trigger a sell-off across the digital asset industry.
Peter Chang, Head of Research at Presto Research, also weighed in, noting that several key labor market reports are due this week. These include JOLTS job openings data for May and June’s non-farm employment and unemployment statistics.
His comments were reported by The Block.
Cryptocurrency fundamentals this year are stronger than ever, driven by favorable regulatory developments and mass adoption. If macroeconomic data shows weakness, expectations for rate cuts could strengthen, pushing prices of risk assets—including crypto—higher.
Vincent Liu of Kronos Research highlighted that investors are once again willing to take risks.
Tariff negotiations ahead of the July 8 deadline and the ongoing weakening of the dollar will be in focus this week. Crypto is rising, but the strength of this confidence may be tested. Momentum is building as macro headwinds ease and risk appetite returns.
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Frequently Asked Questions
Why is Bitcoin’s price stagnant despite high institutional demand?
Early long-term investors are selling portions of their holdings, creating consistent selling pressure that counterbalances new institutional buying. This has temporarily stabilized the price around current levels.
How are corporate acquisitions affecting Bitcoin’s market dynamics?
Companies like GameStop and ProCap are accumulating BTC as a treasury reserve asset. Their entry is absorbing sell-side pressure, but the full effect of their participation may unfold over time.
What external factors could influence Bitcoin’s price soon?
Key factors include U.S. trade policies, macroeconomic data releases, and regulatory updates. Events like the July 9 tariff deadline could induce short-term volatility.
Is the current market stability a sign of strength or stagnation?
Many experts view it as a consolidation phase within a broader bullish cycle. Fundamentals remain strong, with institutional adoption and positive regulatory trends providing long-term support.
What should investors watch in the coming weeks?
Keep an eye on U.S. labor market data, Federal Reserve policy signals, and global trade developments. These could impact risk asset sentiment, including cryptocurrency markets.
Could geopolitical events still affect Bitcoin’s perceived safe-haven status?
Yes. While Bitcoin has shown resilience during recent geopolitical tensions, its role as a store of value continues to evolve relative to traditional markets and macroeconomic conditions.
Despite temporary stability, analysts believe the market is at the beginning of a new upward cycle. The behavior of long-term holders, growing institutional interest, and global macroeconomic events continue to paint a complex yet promising picture for the future of digital assets.