Bitcoin Price Stagnant as Early Investors Sell Holdings

Bitcoin's price has been stagnant, with analysts attributing this to the actions of early investors, often referred to as "original gangsters" or OGs, who are reportedly selling their holdings on Wall Street. This phenomenon has created a significant resistance level for Bitcoin, making it difficult for the cryptocurrency to break through and achieve a substantial price increase. The analyst describes this situation as a "massive resistance in a larger range," indicating that Bitcoin is currently trapped within a specific price band.

The selling pressure from these early investors is a notable factor in the current market dynamics. OGs, who have held onto their Bitcoin for a considerable period, are now offloading their assets, which is contributing to the price stagnation. This trend is particularly concerning for those who are bullish on Bitcoin, as it suggests that the cryptocurrency may face continued resistance in the near term.

Capriole Investments founder Charles Edwards highlighted that this selling pressure has been ongoing since the launch of spot Bitcoin exchange-traded funds in January 2024. Edwards noted that the six-month holder cohort, representing new wave of BTC treasury companies, has absorbed the supply unloaded by long-term holders over the past 1.5 years. This dynamic has created a situation where the amount of BTC acquired by new treasury companies has offset the supply from long-term holders, contributing to the price stagnation.

Despite the institutional interest and corporate investments in Bitcoin, the cryptocurrency's price has remained range-bound. Bitcoin prices have oscillated between $102,000 and $110,000, with brief spikes and dips outside of this range. This market inactivity has been observed despite significant inflows into spot Bitcoin ETFs in the United States, which have seen more than $3.2 billion in inflows without an outflow day over the past fortnight. The number of new Bitcoin treasury companies continues to increase weekly, indicating a growing interest from corporate entities.

Edwards predicted that these Bitcoin treasury companies would create “a huge flywheel buying frenzy” and push the ETF narrative into the backseat. He noted that many copy-cats have entered the market, indicating a growing trend of corporate investments in Bitcoin. Several new corporate investors emerged just last week, including real estate giant Cardone Capital, Anthony Pompliano’s venture firm ProCap, mineral exploration company Panther Metals, and Norwegian deep-sea mining firm Green Minerals. These investments suggest a growing interest from various sectors in adding Bitcoin to their treasury operations.

In the short term, traders are taking profit ahead of the July 9 tariff deadline, as many expect core issues to remain unresolved. They are hedging against a plunge in market prices in case trade talks go south. More and more publicly listed companies are adding Bitcoin to their treasury operations, which is expected to stabilize the market over the next year as more long-term holders enter the market. Investors and traders are also waiting for US macroeconomic data reports and policy updates, as updates on trade deals and the progress of Trump’s budget bill are key risks that need to clear before a continuation of the bullish trend resumes.

Despite the market inactivity, the overall sentiment remains cautious. Investors are closely monitoring the situation, as the actions of OGs could have a significant impact on the future price movements of Bitcoin. The cryptocurrency market is known for its volatility, and the current scenario highlights the influence that early investors can have on the market. The broader market conditions, including regulatory developments and technological advancements, also play a crucial role in determining the cryptocurrency's value. However, the actions of early investors are currently a significant factor in the market dynamics, and their selling pressure is contributing to the price stagnation.