Charles Edwards, the founder of Capriole Investments, has recently delved into the reasons behind Bitcoin's failure to breach the coveted $100,000 threshold. Shedding light on this topic, Edwards also outlined the crucial catalysts that could propel Bitcoin's price upward in the foreseeable future.

In a thought-provoking discussion on social media, Edwards pondered the absence of Bitcoin surpassing the $100,000 milestone despite the introduction of spot Bitcoin ETFs. Noting a mere 50% increase in Bitcoin's value since the SEC's approval of ETFs in January, Edwards sparked curiosity regarding the cryptocurrency's subdued surge, especially as Bitcoin hovered slightly above $71,000 at the time of his analysis.

Edwards pinpointed several pivotal factors that could ignite a substantial surge in Bitcoin's valuation down the line. Firstly, he highlighted the ongoing struggle against selling pressure from long-term holders. Edwards observed a decline in the percentage of wallets holding Bitcoin for over two years, dropping from its peak of 57% in December 2023 to the current 54%. This decline, equivalent to 630,000 BTC, surpasses the total Bitcoin supply purchased by U.S. Bitcoin ETFs since January by 300%.

Secondly, Edwards underscored that the market has yet to fully experience the ramifications of the halving event that occurred in April, halving Bitcoin's daily issuance. He anticipated a widening gap between ETF-driven Bitcoin acquisitions and mined BTC over the next year. Moreover, Edwards suggested that financial institutions require time to evaluate and allocate resources for Bitcoin acquisitions, making spot ETFs the predominant BTC purchasers for the foreseeable future.

In summary, Edwards outlined three fundamental drivers necessary for Bitcoin's substantial upward trajectory: heightened average daily ETF acquisitions, diminished selling from long-term holders, and an increase in U.S. liquidity. He posited that the convergence of these factors could propel Bitcoin's price to unprecedented heights, potentially breaching the elusive $100,000 mark in the process.