Fundstrat’s CIO, Tom Lee, has given his expert opinion on the recent Bitcoin price stagnation despite growing institutional demand. Lee, who was recently appointed the chairman of BitMine, shared his thoughts on CNBC’s ETF Edge on Tuesday after a slow start to the month for Bitcoin. The pioneering cryptocurrency dropped to $105,159 on Tuesday, sparking a broader market shake-off, but has reclaimed $107,000 at the time of writing.Why Bitcoin Price Has StagnatedThe Fundstrat CIO highlighted that the US Bitcoin spot exchange-traded funds (ETFs) have been one of the most successful ETF launches in history. The investment vehicles have collectively attracted $48.6 billion since their launch, as demand for Bitcoin exposure reaches unprecedented levels.Meanwhile, aside from the $342 million net outflow on July 1, the Bitcoin spot ETFs had been on a 15-day inflow streak, with their last outflow before yesterday occurring on June 6. These inflows have resulted in the products accumulating a net asset of $131 billion, which is approximately 6% of Bitcoin’s market capitalization.Yet, Bitcoin has not mooned from the inflows as many expect. Lee noted that one of the reasons behind this price stagnation could be how these ETFs receive their inflows.Specifically, he noted that some of them may have been receiving an in-kind exchange from customers who already own Bitcoin . This type of transaction involves moving Bitcoin from cold wallets to the asset manager’s wallet and does not require active purchasing.Lee called such transactions a “wash,” insisting it would not move Bitcoin’s price. Notably, Bitcoin’s price follows a simple demand-supply mechanism, and such transfers do not bring new demand pressure. As a result, the price continues to range.Selling Retailers Neutralizing Institutional DemandFurthermore, the long-standing Bitcoin proponent blamed the price stagnation on Bitcoin OGs who are sitting on massive profits. He highlighted that early retailers who acquired the crypto leader at significantly lower prices than its current level could be taking profit. “They don’t care if Bitcoin goes to a million; they are probably sellers at around a hundred thousand,” Lee said.As a result, this selling pressure has countered the demands from institutions, slowing down Bitcoin’s price. Interestingly, Bitwise CEO Hunter Horsley shared a similar sentiment earlier, highlighting Bitcoin’s trend around $100,000 as a possible reason for this bearish sentiment.Horsley noted that these profit-taking individuals would reconsider their selling disposition when Bitcoin rallies higher, probably to between $130,000 and $150,000. At that price, he suggested that no one would sell their Bitcoin.Meanwhile, Bitcoin continues to hover around its current all-time high, specifically trading at $107,420. Earlier analysis suggests that this emerging mainstream demand for BTC could drive prices to $200,000 before the end of 2025 and $1 million by the end of this cycle.
