Since mid-May, the price of bitcoin has been quite stable, hovering around $70,000 for some time. In spite of this, the price of the cryptocurrency has not moved much, only varying by 6%. Market players are disappointed by this period of minimal volatility, especially as Bitcoin’s all-time high of $74,000 is still tantalisingly close yet appears to be out of reach.
There has been a lot of discussion regarding price manipulation as a result of traders and investors being extremely irritated with the price’s lack of movement. In a recent talk, Adam Back—a contemporary of Satoshi Nakamoto, the mystery creator of Bitcoin—addressed these worries.
Back proposed that certain sellers who are selling their Bitcoin holdings because they are in dire need of cash might be the cause of the present price suppression. He claimed that these vendors have a finite quantity of Bitcoin to sell and may not be able or willing to wait for better prices. The developer claims that after they have sold all of their interests, the market may begin to rise once more.
These remarks are in line with the sentiments of many members of the bitcoin community. Many believe that trading platforms like Coinbase and ETFs, as well as institutional investors, may be impacting the market. The theory goes that these organizations—possibly working with government agencies—are attempting to maintain price stability or suppression for their own tactical benefit.
When breakout?
Back’s viewpoint, nevertheless, gives some hope for the present state of the market. The hypothesis that the effect of present sellers is transitory implies that Bitcoin may continue to rise when their selling capacity runs out.
This perspective is consistent with historical price movements, which have frequently included periods of consolidation preceding significant price increases.
In conclusion, even if the market participants’ patience is being tested by the current trading range and low volatility, Bitcoin’s price has the ability to break out from its present stalemate and hit new highs if the sellers’ immediate liquidity demands are satisfied.
