The Nasdaq Composite Index has been breaking records for the seventh consecutive day, while Bitcoin, the world’s largest cryptocurrency, continues to decline. According to analysts, there are several factors that may be holding Bitcoin’s price back. Firstly, Bitcoin is taking a breath after a strong start to the year, and its movements are driven by different factors than the stock markets. Secondly, the fourth BTC halving, which took place in mid-April, may take several months to manifest its effects and is most visible when the demand for BTC increases. Thirdly, last week saw the worst outflow from spot Bitcoin exchange-traded funds (ETFs) since March, contributing to negative market sentiment. Fourthly, concerns about the upcoming Mt. Gox payments may still constrain liquidity as market participants may refrain from deploying new capital amid uncertainty. Finally, Bitcoin miners are also putting pressure on the BTC price as increased supply may be contributing to Bitcoin’s current price stagnation as miners sell their holdings.
