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Although Bitcoin (BTC) has surpassed the critical level of $ 100,000, the cryptocurrency market has been dominated by declines in recent days.
At this point, while the BTC price has been moving in a price range of $90,000 to $100,000 in recent weeks, the experienced analyst explained why the Bitcoin price has not been able to rise.
Slow liquidity inflows and Nvidia’s stalled rally could be holding back Bitcoin’s rally, 10X Research founder Markus Thielen wrote in a note to clients.
First of all, Thileen stated that the liquidity flow to the cryptocurrency market through channels such as spot Bitcoin ETFs has slowed down significantly, and that this situation has hindered the upward momentum.
Stating that other technical indicators, apart from ETFs, also show that net liquidity inflow to the cryptocurrency market has slowed down, the analyst stated that another obstacle to the rise is Nvidia.
Accordingly, the analyst said that the pause in the uptrend of Nvidia (NVDA), which is a pioneer in artificial intelligence and risk assets, also hindered the rise in BTC and cryptocurrencies.
“This slowdown in liquidity growth may explain why Bitcoin has struggled to maintain levels above $100,000.
Another overlooked reason is the slowdown in the uptrend in the shares of the world’s largest chipmaker, Nvidia (NVDA). BTC and NVDA bottomed in late 2022 and have had a strong positive correlation since then – except for the summer. However, NVDA’s uptrend has slowed since mid-November. This is the second reason that is holding back Bitcoin’s rise.”
Bitcoin continues to trade at $97,780 at the time of writing.
*This is not investment advice.