Bitcoin Is Trapped In A $10K Range: Here Is Why
Bitcoin's price is stuck between $60,000 and $70,000 due to leveraged trading, low spot demand, and losses among short-term holders.Summary
Bitcoin (BTC) has been trading within a $10,000 range, specifically between $60,000 and $70,000, for the past two months. This stability isn't driven by strong market demand but rather by futures positioning and leveraged trading. According to Wintermute, perpetual futures market activity significantly outweighs spot participation, with a perp-to-spot volume ratio of 15X. Funding rates fluctuate without a clear trend, indicating indecision among traders. The lack of spot market demand is also a key factor, with a 30-day apparent demand of -60,000 BTC, meaning more coins are leaving than entering accumulation. Stablecoin inflows are near a two-year low, further suggesting limited new capital. Short-term holders are also contributing to the pressure, as they are holding unrealized losses, indicated by a short-term holder spent output profit ratio (SOPR) below 1.0 for over 110 days and a negative year-on-year realized price.
(Source：Cointelegraph)