Wall Street Pumps Billions Into Bitcoin—So Why Is It Still Trapped Under $120,000? Experts Reveal the Ugly Truth

Bitcoin's price ceiling just got reinforced with steel. Despite institutional money flooding in, the king of crypto can't seem to punch through the $120,000 barrier. What gives?

The institutional paradox

BlackRock and friends threw billions at BTC ETFs—yet price action moves like a boomer stock. The more Wall Street adopts crypto, the more it behaves like traditional markets. Ironic, isn't it?

Liquidity vacuum

All those shiny new ETF shares created a liquidity black hole. Paper bitcoin now outweighs real bitcoin by 3:1 on some exchanges. When derivatives dominate, price discovery breaks.

The cynical take

Maybe—just maybe—the suits never wanted bitcoin to moon. A volatile asset that outperforms their precious S&P 500? Can't have that. Better to cage it with financialization.

One thing's clear: the game changed. Retail used to move markets. Now we're just along for the ride—watching hedge funds turn crypto into another boring asset class. Thanks, guys.

What’s Holding Bitcoin Back?

Despite the substantial influx of nearly $5 billion in bitcoin acquired through exchange-traded funds (ETFs) in just a few weeks, the price of Bitcoin has failed to surpass the $120,000 target identified by analysts.

Public companies, Strategy and GameStop, have joined the ranks of institutional buyers, marking a significant shift in corporate interest toward Bitcoin. This growing demand indicates that there are substantial buyers ready to purchase at prices above $100,000.

However, DanteX asserts that the market has been characterized by an unusual phenomenon: the analyst alleges that someone appears to be “strategically offloading” Bitcoin in the $100,000 to $110,000 range, effectively absorbing the demand and preventing upward movement. 

This selling pressure seems to come from a major player—reportedly hedge funds or early investors—actively liquidating positions to offset the inflow of institutional capital.

Market Exhaustion Or Distribution? 

As the market enters the latter half of summer, a historically weak period for cryptocurrencies, concerns arise about liquidity and retail interest. 

DanteX noted that if the Bitcoin price cannot rally now, amid significant buying and market enthusiasm, the outlook may dim as trading volumes decline. 

The analyst further shared that the current price stagnation at near-record highs often indicates either market exhaustion or a distribution phase, suggesting that while demand exists, it is being countered by strategic selling.

Despite the overall positive macroeconomic environment—where stock markets are soaring, real yields are declining, and liquidity is increasing—DanteX highlights that the bitcoin price remains unresponsive. 

The analyst stated that it could imply that current holders may not be ready for a breakout or are intentionally limiting potential gains. Interestingly, when Bitcoin price movements stall, capital tends to FLOW into altcoins, which are often viewed as higher-risk, higher-reward investments. 

DanteX believes that the current skepticism surrounding the likelihood of an altcoin season amid the current market condition, could actually set the stage for one, as many investors remain “under-positioned.”

The role of ETFs cannot be overlooked, DanteX further said. He said that while record inflows into ETFs signal strong institutional interest, they do not always correlate with immediate price increases, especially when met with significant selling pressure. 

DanteX notes that much of the exchange-traded fund exposure may be hedged or arbitraged, resulting in a complex market dynamic where asset growth does not immediately reflect in Bitcoin’s spot price.

Looking ahead, the analyst suggests monitoring the activity of large wallets, especially those exhibiting selling patterns that align with recent price suppression. 

Watching macroeconomic indicators, such as potential Federal Reserve rate cuts or shifts in the value of the dollar, is also said to be crucial as these factors could influence market sentiment.

Featured image from DALL-E, chart from TradingView.com