Why Bitcoin’s Price Is Stagnant Even as Wall Street Piles In
Wall Street's pouring billions into Bitcoin—so why isn't the price moving? The crypto market's playing a dangerous game of chicken with traders.
Institutional demand vs. market mechanics
BlackRock's ETF inflows hit record highs last quarter, yet BTC's stuck in a tight range. Classic crypto—where fundamentals take a backseat to leverage and liquidity games.
The great liquidity squeeze
OTC desks report unprecedented institutional buy orders, but exchanges show thinning order books. Somebody's hoarding coins—and probably writing derivative contracts to profit from the stagnation.
When the dam breaks
This isn't 2021's retail frenzy. The current accumulation phase reeks of Wall Street's favorite playbook: suppress volatility, accumulate positions, then engineer a 'breakout' when maximum pain's been inflicted. Just don't tell the SEC.
Bonus jab: Meanwhile, traditional finance still can't decide if crypto's a hedge or a risk asset—so they're treating it like both while charging 2% management fees.
Long-Term Holders Are Selling to Wall Street
Since the approval of spot Bitcoin ETFs in January 2024, Edwards explains that long-time Bitcoin holders (LTHs) have been quietly offloading their positions. These sales are directed toward institutional buyers entering the space through ETFs, creating a hidden source of selling pressure that offsets much of the bullish sentiment.
While mainstream narratives often spotlight institutional FOMO and the surge in ETF flows, Edwards argues the true market dynamic lies in this discreet transfer of coins from seasoned holders to Wall Street.
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Treasury-Driven “Flywheel Effect” Accelerates
Edwards reiterated a prediction he made earlier this year: that publicly traded companies holding bitcoin on their balance sheets would spark a compounding “flywheel” of adoption. He believes this dynamic is now fully in motion, with more corporations joining the trend and accumulating Bitcoin at a growing pace.
This corporate buying behavior, he says, is rapidly becoming a more influential force than the ETF story itself.
On-Chain Data Points to Strong Accumulation
Looking at recent on-chain trends, Edwards highlighted a striking uptick in the number of wallets holding Bitcoin for more than six months. Over the past two months, this group has purchased more BTC than LTHs have sold over the last 18 months—an “incredible” shift in market structure, according to him.
Historically, such large-scale accumulation is often followed by price squeezes, which Edwards views as a short-term bullish signal.
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Market Weakness Could Be Short-Lived
Despite this momentum, Edwards cautions that broader on-chain indicators still reflect some underlying fragility. However, he believes that continued buying by newer long-term investors could resolve this weakness.
“If companies with Bitcoin treasuries maintain this aggressive pace of accumulation, we’re likely only in the early stages of the cycle,” he noted. “If that momentum holds, the market could regain strength quickly.”
