Bitcoin (BTC) is currently trading around $107,500, having experienced a phase of horizontal movement since reaching an all-time peak above $126,000 on October 6. Despite a recent decline, the cryptocurrency has appreciated nearly 52% compared to the previous year, when it was at $72,350 on October 31, 2024. This indicates that while market sentiment may be soft, the fundamental value of Bitcoin remains robust.
Understanding the Current Slowdown
Crypto analyst Pierre Rochard suggests that Bitcoin’s current stagnation can be attributed to “OG whales taking profits after an epic decade” and a shift in focus towards AI-driven tech stocks like NVIDIA, as well as traditional safe havens like gold. However, he insists these are temporary pressure points and that Bitcoin’s inherent utility and fundamental worth are on the rise.
Other market participants echo this sentiment, noting the recent fluctuations as cyclical rather than indicative of a fundamental change. Old investors liquidating their positions, fresh liquidity entering AI sectors, and a pivot towards gold are all typical responses seen as a cycle concludes.
“When liquidity normalizes and macro tailwinds return, capital will rotate back toward scarcity and neutrality — and Bitcoin remains the purest expression of both,” they commented.
Long-term holders have been cashing out, with a report from Glassnode indicating that those who held BTC for over 155 days realized 3.27 million BTC in profits this cycle, a milestone that was only eclipsed during the peak observed in 2017. Despite this selling pressure, indicators like the Adjusted MVRV ratio have remained balanced, signifying ongoing long-term confidence in the asset.
Meanwhile, gold’s market capitalization hit $29 trillion, climbing 56% over the past 12 months, providing an appealing alternative for investors alongside Bitcoin. Analysts like Crypto Rover caution that gold appears “overbought” at an RSI of 91.8, suggesting a potential capital shift back toward Bitcoin.
Additionally, institutional selling has influenced recent market dynamics. Reports from late July indicated that key firms, including Galaxy Digital, strategically sold off significant BTC holdings as prices approached $120,000, viewed as profit-taking rather than a permanent exit from the market.
The Case for Lasting Strength
In the view of Rochard and certain analysts, the current market behavior is part of a natural cooling phase following a major rally. Trader Daniel Tschinkel summed it up succinctly: “Liquidity has shifted temporarily, but none of that changes Bitcoin’s structural strength.”
With its capped supply, increasing institutional involvement through ETFs, and enhancing value as a neutral settlement medium, experts argue that Bitcoin’s long-term outlook is stronger than ever.
Overall, Bitcoin has fluctuated between $108,201 and $113,567 in the past 24 hours, with a 2.6% dip, but has gained 1.2% for the week. Over the last month, it’s down slightly by 3.4%, nevertheless outperforming the general crypto market, which has risen 0.9% this week.
