Why is Bitcoin not moving?
Since the beginning of 2024 until today, investors and traders have noticed a clear decline in the dynamics of Bitcoin movements, despite the major events that the market has witnessed, such as the approval of spot ETF funds and rapid regulatory developments. This leads us to ask the question.
Why is Bitcoin not moving as expected?
1. Price stagnation due to institutional accumulation.
Many major investment institutions have started accumulating Bitcoin over the past months, especially after the approval of ETF funds. This behavior leads to non-aggressive buying pressure, as purchases are made through indirect orders or in stages, creating a horizontal accumulation of price without strong upward breakouts.
2. Traders are waiting for the signal.
Short-term traders usually wait for a strong technical or news signal to open large positions. In the absence of clear volatility or sudden events, the market remains neutral. This explains the decline in daily trading volumes compared to previous periods.
3. Overall uncertainty in the global economy.
Between the decisions of the US Federal Reserve, fluctuations in the dollar index, and geopolitical tensions... investors have become more cautious. Bitcoin is no longer just a speculative asset. It has become part of the portfolio of many institutions, thus it is more affected by macroeconomic factors like any traditional financial asset.
4. The halving and its psychological impact.
Although the halving 'block mining reward division' has historically led to price increases thereafter, the market has begun to price in these events in advance. With the recent halving approaching, many investors have already entered the market, which has limited the impact in the short term.
5. Selling pressure from old whales.
We occasionally witness movements from old wallets containing large amounts of Bitcoin, some dating back to before 2017, and these movements may be aimed at taking profits or redistributing liquidity. This creates psychological and technical resistance to price breakouts.
In summary, movement is coming... but patience is required.
Bitcoin is not moving because it is being redefined in the eyes of the global market. It is now caught between being digital gold or a high-risk speculative tool. This uncertainty in identity reflects on price behavior, but history teaches us that periods of price stagnation have always preceded massive movements.
If you are a smart investor, know that the current calm is just the calm before the storm.
