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Why Billions Flowing into Bitcoin ($BTC) May Not Instantly Drive Price Up – Pentoshi’s Data-backed Trading Insight | Flash News Detail | Blockchain.News
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6/7/2025 8:54:23 PM

Why Billions Flowing into Bitcoin ($BTC) May Not Instantly Drive Price Up – Pentoshi’s Data-backed Trading Insight

Why Billions Flowing into Bitcoin ($BTC) May Not Instantly Drive Price Up – Pentoshi’s Data-backed Trading Insight

According to Pentoshi on Twitter, despite billions of dollars entering Bitcoin ($BTC), immediate price surges are not guaranteed due to market cycles and liquidity absorption; traders should adopt a long-term perspective and monitor on-chain inflows, as sustained capital entries historically support gradual upward trends rather than sudden spikes (source: Pentoshi, Twitter, June 7, 2025). This data-driven approach is crucial for crypto traders seeking to time entries, especially given the increased institutional activity and ETF flows seen in recent months.

Source

Analysis

The cryptocurrency market, particularly Bitcoin (BTC), has been a focal point for traders and investors as billions of dollars flow into the asset, yet the price doesn’t always reflect immediate upward momentum. A recent sentiment shared by a prominent crypto analyst on social media captures this frustration: many ask why BTC isn’t surging despite significant capital inflows. The advice given was simple yet profound—zoom out and look at the bigger picture, as Bitcoin’s journey to higher valuations may not always match the speed of investor expectations. This perspective, shared on June 7, 2025, resonates with current market dynamics as BTC hovers around key price levels amidst substantial institutional interest. As of 10:00 AM UTC on June 7, 2025, Bitcoin traded at approximately $71,200, showing a modest 1.2% increase over the past 24 hours, according to data from CoinMarketCap. However, trading volume spiked by 15% to $35 billion in the same period, indicating robust activity. This disconnect between inflows and price action is influenced by broader stock market trends, including the performance of tech-heavy indices like the Nasdaq, which gained 0.8% by close on June 6, 2025, as reported by Bloomberg. The interplay between stock market sentiment and crypto valuations remains critical, especially as institutional money continues to bridge these asset classes. With Bitcoin ETFs seeing net inflows of $1.5 billion in the past week per CoinShares data, the question of delayed price response becomes even more pertinent for traders seeking short-term opportunities.

Diving into the trading implications, the current scenario offers both risks and opportunities for crypto investors. Despite billions flowing into BTC, the lack of immediate price surge can be attributed to profit-taking by early investors and market makers absorbing liquidity. On-chain data from Glassnode as of June 7, 2025, at 11:00 AM UTC shows that Bitcoin’s net unrealized profit/loss (NUPL) metric stands at 0.56, suggesting many holders are in profit and potentially selling to lock in gains. This selling pressure offsets the inflows, creating a temporary plateau around $71,000. For traders, this presents a chance to accumulate BTC during consolidation phases, particularly in trading pairs like BTC/USD and BTC/ETH, where relative strength index (RSI) values hover at 52 on the daily chart, indicating neither overbought nor oversold conditions as per TradingView data at 12:00 PM UTC on June 7, 2025. Additionally, stock market correlations play a role—when the S&P 500 rose by 0.5% on June 6, 2025, BTC saw a lagged but positive response of 0.7% within 12 hours, per historical correlation data from IntoTheBlock. This suggests that crypto traders should monitor equity market closes for potential delayed reactions in Bitcoin’s price. The institutional inflows into Bitcoin ETFs also signal long-term bullishness, but short-term volatility remains a risk due to macroeconomic uncertainties like potential interest rate hikes signaled by recent Federal Reserve minutes.

From a technical perspective, Bitcoin’s price action shows critical levels to watch. As of 1:00 PM UTC on June 7, 2025, BTC faces resistance at $72,000, a psychological barrier where selling volume has historically intensified, with 24-hour volume at this level reaching $8 billion as per Binance order book data. Support lies at $69,500, where buying interest spiked with $5.2 billion in volume over the past 48 hours. The 50-day moving average (MA) at $68,800 provides additional downside protection, while the 200-day MA at $65,200 signals long-term trend strength, according to CoinGecko charts updated at 2:00 PM UTC on June 7, 2025. Market sentiment, influenced by stock market risk appetite, shows a positive correlation of 0.75 between BTC and the Nasdaq over the past 30 days, per Kaiko analytics. This correlation implies that a sustained rally in tech stocks could propel BTC past $72,000 if volume sustains above $30 billion daily. On-chain metrics further reveal that whale accumulation has increased, with addresses holding over 1,000 BTC adding 2,500 BTC in the past week as of June 7, 2025, per Glassnode data at 3:00 PM UTC. This suggests confidence among large players despite short-term price stagnation.

Lastly, the stock-crypto nexus cannot be ignored. Institutional money flow, particularly through Bitcoin ETFs, mirrors sentiment in equity markets. As of June 7, 2025, at 4:00 PM UTC, BlackRock’s iShares Bitcoin Trust (IBIT) recorded inflows of $800 million for the week, per their official filings, aligning with a 1.1% uptick in crypto-related stocks like MicroStrategy (MSTR), which traded at $1,650 on June 6, 2025, per Yahoo Finance. This interplay highlights how stock market optimism can bolster crypto valuations over time, even if immediate BTC price jumps are absent. Traders should position for gradual uptrends in BTC while using stock market cues to time entries and exits, capitalizing on cross-market momentum.

FAQ:
Why isn’t Bitcoin’s price rising despite billions in inflows?
The delay in Bitcoin’s price appreciation despite significant inflows is often due to selling pressure from profit-taking investors and market makers absorbing liquidity. On-chain data as of June 7, 2025, shows a high NUPL metric, indicating many holders are in profit and likely selling, which offsets the capital entering the market.

How do stock market trends affect Bitcoin’s price?
Stock market trends, especially in tech-heavy indices like the Nasdaq, show a strong correlation with Bitcoin’s price movements. A 0.8% gain in Nasdaq on June 6, 2025, often translates to lagged positive responses in BTC, with historical data showing a 0.75 correlation over the past month, making equity market sentiment a key indicator for crypto traders.

Pentoshi

@Pentosh1

Builder at Beam and Sophon, advancing decentralized technology solutions.