Why Bitcoin Is Not Going Past Its ATH Despite Raging ETF Interest

Bitcoin's price is still fluctuating around the $71,000 mark, and it is unable to break through its all-time high (ATH) of $73,738 set a couple of months ago.

Bitcoin’s price continues to hover around the $71,000 mark, failing to cross its all-time high (ATH) of $73,738 set a couple of months ago. It rose to the current level a few days back, before which it was trading below the $70,000 mark.

The price action has been slow despite a nineteen-day streak of rising BTC ETF inflows. Observers are left wondering why bitcoin is not surging past its recent ATH despite raging ETF interest.

Spot BTC ETFs in the US and other regions now hold over 5% of the bitcoin in circulation, with inflows registering at over $15 billion. Yet, these are not boosting bitcoin’s price due to other factors at play.

The ETF craze is only a trend in the US and a few other countries, which are too limited to get bitcoin to rally on their own. ETFs must be offered to investors in several other markets to impact the largest crypto’s price as enthusiasts currently expect them to.

Moreover, ETFs are just one product type; others include futures and options, and all these products need to see activity like ETFs to give a massive push to the underlying asset’s price. Bitcoin’s price also depends on geopolitical events and macroeconomic factors – something to keep in mind before expecting price surges from a single factor like the ETF.

Another factor keeping bitcoin below its ATH is the liquidation it faces from long-term holders who have held it for at least two years. They are selling the asset to book profits, which prevents bitcoin from rising rapidly.

Lastly, the halving’s effects are yet to kick in, which may take until the end of this year. Historically, halvings have led to BTC prices rallying to highs beyond the levels seen during the previous bull runs. So, those expecting the halving to work its magic will have to wait a few more months to see how it pans out.