Why Is Bitcoin (BTC) Having Difficulty Exceeding Its Record Highs? Insights from a Crypto Research Firm

Bitcoin’s (BTC) difficulty in exceeding its previous all-time highs is linked to a reduction in stablecoin creation following the halving event, as noted by the cryptocurrency research organization 10x Research.

In its most recent report released on Sunday, 10x Research pointed out that the Bitcoin halving event that took place on April 20 resulted in a significant decrease in the generation of stablecoins.

Additionally, wallets containing over $10 million in stablecoins have experienced a downturn. This pattern is currently hindering Bitcoin’s advancement.

IMPORTANT Week for #BITCOIN: 100,000 Bitcoins Withdrawn From Exchanges ->

1-11) Presently, at the upper end of its range, Bitcoin encounters obstacles in surpassing new all-time highs. This is due to the Bitcoin halving on April 20. Post this event, the minting of… pic.twitter.com/XOIGVGrZuT

— 10x Research (@10x_Research) June 10, 2024

Generally, an increase in stablecoin holdings signals substantial buying pressure and positive sentiment within the market. The majority of traders utilize stablecoins for entering and exiting trades on cryptocurrency platforms.

In contrast, a decline in stablecoin reserves highlights diminishing demand for cryptocurrencies.

Moreover, the report indicated that nearly 100,000 Bitcoin, valued at $6.75 billion, were withdrawn from exchanges last month. This unprecedented movement was largely driven by two U.S.-based exchanges, Kraken and Coinbase, which recorded withdrawals of 55,000 BTC ($3.8 billion) and 24,000 BTC ($1.7 billion) respectively.

The significant decrease in Bitcoin’s reserves on exchanges suggested a sell-side liquidity crisis, indicating that demand was surpassing supply.

This latest report follows an optimistic outlook from 10x analysts the previous week.

A head-and-shoulders pattern for Bitcoin might soon breach the resistance line, potentially driving its price towards $83,000 in the near future, the report stated.

Another optimistic projection noted that Bitcoin is approaching a pivotal technical breakout, with the potential to hit a landmark of $100,000. Sustaining levels above $70,000 could enhance the chances of the King Crypto reaching $100,000.

As of this writing, Bitcoin was trading at $69,361, experiencing a slight increase of 0.42% over the last 24 hours, based on data from Coinstats.

Disclaimer: The information provided is not trading advice. Bitcoinworld.co.in accepts no responsibility for any investments made based on the information presented on this page. We strongly advise conducting independent research and/or consulting with a qualified professional before making any investment decisions.