Why Is Bitcoin Struggling To Surpass Its All-Time Highs? Crypto Research Firm Explains
Portfolio Pulse from Aniket Verma
Bitcoin is struggling to surpass its all-time highs due to a slowdown in stablecoin minting following the April 20 halving event, according to 10x Research. The report also noted a significant withdrawal of Bitcoin from exchanges, particularly Kraken and Coinbase, indicating a sell-side liquidity crisis. Despite these challenges, analysts remain optimistic about Bitcoin's potential to reach $83,000 or even $100,000 in the near term.
June 10, 2024 | 6:37 am
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NEGATIVE IMPACT
Coinbase saw significant Bitcoin withdrawals amounting to 24,000 BTC ($1.7 billion), contributing to a sell-side liquidity crisis. This could impact Coinbase's trading volumes and revenues in the short term.
The significant Bitcoin withdrawals from Coinbase indicate a potential decline in trading volumes and revenues, leading to a likely short-term negative impact on the stock.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 80
NEGATIVE IMPACT
Kraken experienced substantial Bitcoin withdrawals totaling 55,000 BTC ($3.8 billion), indicating a sell-side liquidity crisis. This could negatively affect Kraken's trading volumes and revenues in the short term.
The large Bitcoin withdrawals from Kraken suggest a potential decline in trading volumes and revenues, leading to a likely short-term negative impact on the stock.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 80
NEUTRAL IMPACT
Bitcoin is facing challenges in surpassing its all-time highs due to a slowdown in stablecoin minting following the April 20 halving event. Additionally, significant withdrawals from exchanges like Kraken and Coinbase indicate a sell-side liquidity crisis. Despite these hurdles, analysts are optimistic about Bitcoin's potential to reach $83,000 or even $100,000 in the near term.
The slowdown in stablecoin minting and significant Bitcoin withdrawals from exchanges are key factors impeding Bitcoin's progress. However, the optimistic forecasts from analysts provide a balanced view, resulting in a neutral short-term impact.
CONFIDENCE 90
IMPORTANCE 100
RELEVANCE 100