Bitcoin Stuck at $30,000 Despite Consecutive Positive Factors... Trading Volume Also Plummets

BlackRock Bitcoin ETF Reapplies, Stagnant Despite June CPI Slowdown
Long-Term Holder Proportion Hits Record High... Supply Increase Concerns Also Impact Negatively

The price of the leading cryptocurrency Bitcoin remains trapped within the $30,000 range. Despite BlackRock, the largest asset management firm, moving forward with the launch of a Bitcoin spot exchange-traded fund (ETF), and the positive news of the U.S. June Consumer Price Index (CPI) showing a faster-than-expected slowdown, the price remains stagnant. In particular, although expectations have grown that the interest rate hikes are nearing their end, the price increase has been limited.

According to the global cryptocurrency market tracking site CoinMarketCap, as of 2:59 PM on the 13th, Bitcoin was priced at $30,307 (approximately 38.7 million KRW), down 1.16% from the previous day.

Bitcoin's price has been declining recently despite BlackRock's reapplication for a Bitcoin spot ETF listing. On the 3rd (local time), BlackRock reapplied to the U.S. Securities and Exchange Commission (SEC) for the Bitcoin spot ETF listing, and Bitcoin's price rose to around $31,300. On the 6th, Bitcoin's price also remained above $31,300.

Previously, the SEC did not approve the listing due to the lack of a "surveillance-sharing agreement" designed to prevent market manipulation by sharing market trading activities, clearing activities, and customer identification information. BlackRock strengthened these aspects and reapplied. If BlackRock's Bitcoin ETF is listed, it is widely expected to be a positive factor as large-scale Bitcoin purchases will be necessary to manage the product.

Meanwhile, optimism has emerged that the rapid rise in U.S. inflation has eased and that interest rate hikes will soon end. Nevertheless, Bitcoin's price has shown a downward trend. According to the U.S. Department of Labor, the June CPI rose 3.0% year-over-year, below the market forecast of 3.1%. This is about one-third of the 9.1% peak inflation rate recorded in the same month last year.

Despite these positive factors, recent Bitcoin trading activity has not been vigorous. According to CoinMarketCap data, the average daily Bitcoin trading volume from the 1st to the 13th of this month was $12.65806 billion (approximately 16.1428 trillion KRW). This represents a sharp 21.17% decrease compared to last month's $16.05781 billion (approximately 20.4673 trillion KRW). It also marks an 11.52% decline compared to May's $14.30558 billion (approximately 18.2325 trillion KRW). Notably, on the 9th of this month, the daily average trading volume dropped to as low as $7.9333 billion.

Additionally, the amount of Bitcoin flowing into cryptocurrency exchanges has gradually decreased. Generally, the less Bitcoin flowing into exchanges, the fewer sell orders there are, which tends to push prices up. However, recently, the opposite phenomenon has been observed. This is interpreted as a reduction in Bitcoin trading activity itself. According to cryptocurrency data provider CryptoQuant, the total Bitcoin holdings across all exchanges decreased from 2,208,620 BTC on May 24 to 2,084,121 BTC as of the previous day.

The loss of momentum in Bitcoin trading and the price decline are interpreted as Bitcoin holders choosing to observe the market rather than actively participate in trading. Strainja Sabic, Head of Data Analysis at the cryptocurrency platform FRNT Financial, explained, "Among the Bitcoin supplied over the past two years, 70% has not been traded for over a year, reaching an all-time high. This indicates that the dominant Bitcoin investors currently are long-term holders and are less sensitive to macroeconomic considerations."

Furthermore, the recent failure of Bitcoin prices to rise is also believed to be influenced by concerns over a potential increase in supply. The U.S. government reportedly seized Bitcoin worth approximately $310 million from the dark web drug marketplace 'Silk Road' and transferred it to another coin wallet. Cryptocurrency media outlet CoinDesk reported, "(The U.S. government) also transferred Bitcoin worth $1 billion to the same wallet in March, which led to a decline in major cryptocurrency prices," adding, "After seizing 50,000 Bitcoins related to Silk Road in November last year, it sold 9,861 Bitcoins for $216 million in March this year."