Why Bitcoin Is Stuck In A Range And What Could Change That: 10x Research

Bitcoin‘s BTC/USD recent price stagnation has some investors questioning whether a breakout is imminent.

A new report by 10x Research delves into on-chain data, exploring both bullish and bearish signals that could determine Bitcoin’s next move.

“While Bitcoin sits tantalizingly close to all-time highs,” says Markus Thielen, author of the report, “key indicators reveal a complex interplay between investor sentiment and macro factors.”

Whales Accumulate, Miners Sell: A Tale of Two Trends

The report highlights a fascinating trend: Mega whales (holders with over 10,000 BTC) are accumulating Bitcoin at an unprecedented rate, adding a staggering 164,000 BTC in May alone.

This bullish signal is further bolstered by the movement of large amounts of Bitcoin off exchanges, potentially indicating anticipation of higher prices.

However, the report also identifies a countervailing force.

Bitcoin miners, facing reduced block rewards after the April halving event, are increasingly selling their holdings to cover operational costs.

Also Read: Bitcoin Spot ETFs On 15-Day Inflow Streak As Wisconsin Starts Buying Bitcoin

Stablecoins: A Double-Edged Sword

The report sheds light on the role of stablecoins, cryptocurrencies pegged to traditional assets like the US dollar.

While the issuance of nearly $140 billion in stablecoins signifies significant investor interest, the recent decrease in holdings by large investors raises questions.

“Whales’ stablecoin holdings peaked in late April,” writes Thielen, “potentially signaling a shift towards converting these assets into Bitcoin or fiat currency.”

Fed Policy And Inflation: The Looming Wildcards

10x Research underscores the importance of macroeconomic factors in driving Bitcoin's price. The upcoming meetings and data releases, particularly the June 12 U.S. inflation print, are seen as pivotal.

“The market either needs rate cuts by the Fed or a lower inflation print for Bitcoin to rally,” they stated, emphasizing the potential catalysts for breaking Bitcoin out of its current range between $60,000 and $73,000.

With so many variables at play, navigating the current crypto market climate can be challenging.

Benzinga’s Future of Digital Assets event, scheduled for Nov. 19 offers a valuable platform for gaining insights from industry experts.

Read Next: What The Ethereum ETF Means For Altcoins And Meme Coins

This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.