Bitcoin’s Love‑and‑Hate Relationship with $60,000
Last week, Bitcoin performed a dramatic “cry‑in‑the‑exciting‑market” dance that sent it under $60,000, and yet it failed to climb back above the $63,000 shoulder it had been trying to reach for days. It’s the classic “I-can’t-attain-the-money” spiel that always plays out whenever Bitcoin nudges towards that $72,000 tipping point.
What’s Going On?
- Re‑echoed Stress‑Test: The market’s big pattern is this: end up at $72,000, sellers swoop in, and we end up in a quick slide to $60,000 again. This haunting loop has been playing from March until now.
- Whipping‑It‑Out Retainers: Even once the price has settled, the emotional after‑shock for day‑traders and long‑term “hodlers” lingers. It’s like thinking you hit a big milestone, but the “safety net” collapses.
- Lost Fervor: Investors are wearing a “dejected” badge. Even after the market’s major 2022 “fundamental transformation”, Bitcoin hasn’t managed to sway those somber sentiments. Those with a financial future in Bitcoin are either dumping or putting the “buy” button on pause.
Numbers in the Wild
According to IntoTheBlock data, the percentage of Bitcoin drifting back into the hands of retail folks is 87.9 %—a bit down from the above‑89 % peak of this year. That’s the lowest point since mid‑2022. Meanwhile, the retail‑held supply has dipped to 17.35 million, a figure that hovers near the trough that puzzled everyone last September.
On the other side, the portion of Bitcoin scooped up by long‑term holders (“hodlers”) fell from a high of 70 % at the end of last year to about 65 %, another low‑point that hasn’t been seen since mid‑2022.
Why the Dip? ETFs or Emotional Decline?
The number of retail wallets losing ownership at current price levels has grown, topping 6.2 million at the last correction and climbing to 7.6 million in late June. That is a record high since last April. So what’s the big punch line?
Two contenders:
- ETF Attraction: Some retail investors are shifting their Bitcoin into the newly minted US Bitcoin spot ETF. The ETF saw more than $14.5 billion of net inflows since its January launch, and on a single day it took in $129 million—the best since early June.
- Systemic Centralization: Holding Bitcoin in ETF accounts belongs to a “centralized” environment. That goes against the original promise of a global, permission-less payment network. In short, it’s becoming more “stuff for the fund managers” than “passport for the people.”
Even though ETFs helped boost Bitcoin’s price this year, will they keep the momentum alive for a long stretch? Not guaranteed. Even the likes of Zoom (down 90 % from its 2020 peak) saw institutional giants like BlackRock and Vanguard own 15 % of the shares. Yet the overall performance stayed underwhelming, prodding the question: why does it matter who owns the coins if the market is sweating?
Looking Ahead
There’s still a shot that Bitcoin could march over the rope of those stubborn barriers and break into fresh record grounds, especially if more investors decide to ride the bullish wave. Whether that happens because of widespread crypto use or simply because people crave the “big‑money” vibe remains to be seen.
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