Charles Edwards, a prominent crypto analyst and founder of Capriole Investments, recently shared his perspective on why Bitcoin has not yet reached the coveted $100,000 price level. Despite the launch of spot Bitcoin ETFs, Edwards highlighted several key factors that he believes are currently impeding Bitcoin's ascent to this milestone.

In a thread posted on the X social media platform, Edwards addressed the lingering question of why Bitcoin's price has not surged beyond $100,000, especially considering the approval of spot Bitcoin ETFs by the SEC earlier this year. Despite the ETF greenlight, Bitcoin has seen only a modest 50% increase in price since January, trading slightly above $71,000 at the time of his analysis.

One significant factor contributing to Bitcoin's price stagnation, according to Edwards, is the persistent selling pressure from long-term holders. He noted a decline in the percentage of wallets holding Bitcoin for more than two years, dropping from an all-time high of 57% in December 2023 to 54% presently. While a 3% decrease may seem modest, it represents a substantial amount of BTC—630,000 in total—equivalent to 300% of the BTC supply purchased by Bitcoin ETFs in the U.S. since January.

Another factor hindering Bitcoin's ascent to $100,000, Edwards explained, is the delayed impact of the halving event that occurred in April. Following the halving, Bitcoin's daily issuance rate decreased by 50%, yet Edwards believes the full effects of this reduction have yet to materialize. He anticipates that over the next year, the gap between ETF purchases of Bitcoin and newly mined BTC will widen significantly, contributing to upward price pressure.

Looking ahead, Edwards outlined three essential drivers necessary for Bitcoin to experience a sharp uptrend. These include an increase in average daily ETF buying, a decrease in long-term holder selling, and growth in U.S. liquidity. As financial institutions continue to evaluate the cryptocurrency landscape and allocate funds for Bitcoin purchases, spot ETFs are expected to play a pivotal role in driving demand, at least throughout the current year.

In summary, while Bitcoin has yet to surpass the $100,000 mark, Charles Edwards identifies key factors such as long-term holder selling and the delayed impact of the halving event that are currently constraining its price growth. Nevertheless, he remains optimistic about Bitcoin's prospects, highlighting the importance of sustained ETF buying, reduced selling pressure from long-term holders, and increased liquidity as catalysts for future price appreciation.