Why Bitcoin Hasnt Reached the Moon Yet CEO Blames Key Figures

Capriole Investments founder says BTC may be silenced as major players are selling off. The ongoing crisis among Bitcoin miners could become a key obstacle to BTC’s recovery.
After reaching a peak of $63,800 on July 1, Bitcoin (BTC) has weakened and fell to a low of $57,000 on July 4. This marks a 9% decline in July, signaling a sideways trend for the fourth consecutive month since the second quarter.
What caused the crash?
Charles Edwards, founder of the crypto hedge fund Capriole Investments, claims that part of BTC’s weakness is due to “key participants” selling off their holdings.
“This is why we haven’t moonshot yet… When you look at the data from the four most important participants in Bitcoin, our net flow amounts to $24 billion being dumped on the market in 2024.”
Edwards’ view is based on the demand and supply from BTC miners, ETFs, and long-term holders (LTH). According to Edwards, based on these three entities, approximately 374,000 BTC, worth over $20 billion, have been dumped onto the market.
According to Edwards, when the LTH metric is adjusted from +2 years to 155 days, the net outflow is about $40 billion.
Additionally, when Grayscale’s GBTC outflows are considered and removed, the overall sell-off value of these three entities amounts to an $18 billion BTC outflow.
AMBCrypto’s assessment of BTC ETF flows shows that, unlike the stable positive flows recorded in the first quarter, the net flows in the second quarter fluctuated significantly. Thus, stagnant ETF demand confirms Edwards’ argument.
Another key entity mentioned in the analysis, BTC miners, remain deeply mired in a profitability crisis post-halving event. Therefore, distressed miners may sell more BTC assets to stay afloat.
Willy Woo pointed out that the mining crisis could further delay the bull market reversal of this largest digital asset.
“Every day, I look at seven squiggly lines to see if it’s time. No, not yet. Miners are still bleeding, writhing in pain.”
In the long run, Bitcoin hash ribbons are moving averages indicating when the hash rate drops, particularly during miner profitability crises.
Although historically they have also signaled market bottoms, this indicator has yet to recover and further reinforces BTC’s weak market structure