Why does the price not rise?

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A question that goes on social media, which reflects the confusion that the Bitcoin Mishki and the believers shared.

“Can anyone explain to me why companies buy billions of dollars in bitcoin every week, and the price has almost changed almost during the past six months?” A user was published on X on June 27. “Explain to me like me 5.”

Soon the publication created nearly two million views because it strikes in the heart of the new strange Bitcoin reality. The world’s most famous encryption currency in the world reached the highest level at all times 111,814 dollars on May 22, according to the data company Coingecko.com. But since then, the recession was. It has now declined and is circulating about $ 106,000. Despite a wave of large money flowing from companies such as Microstrategy, hedge boxes and even foreign governments, the price barely moved.

With this type of demand, you expect prices to rise.

But they did not. Why?

Bitcoin is digital gold, but not all gold movements quickly

To understand what is happening, you have to understand what Bitcoin: digital gold. People buy it primarily to keep it in the long run, not his spending. When adult investors buy Bitcoin, they usually transport them from stock exchanges and lock them in safe “cold storage” wallets.

This creates a strange situation. A large amount of bitcoin is bought, but a few are actively traded. Although this reduces the available supply, it does not pay the price automatically to the top unless the new buyers and speculators rush to the market. Now, this rush did not come. For every enthusiastic buyer, there appears to be an excited seller.

“Another person sells it,” says legendary financier Jim Chanus, who is famous for his winning proof against Enron.

Interpretation is the simple offer and demand. “This is because the sellers are completely excited about sale at current prices like buyers for purchase,” said Peter Chef, the world’s chief economist and strategy at Europac.com and one of the most protection critics in Bitcoin Maximalss:

Blame stablecoins: boring coins do big things

While Bitcoin was stuck in place, Stablecoins became the real stars in the world of encryption. Stablecoin is a type of cryptocurrency designed to expand a fixed value, and it is usually linked to one with one with the US dollar. It is not intended to be a speculative investment. Instead, it is designed to use it.

Think about them as Venmo or Paypal of Crypto, but it can be used anywhere in the world, 24/7, without the need for a bank. And their use explodes, as the sizes of transactions now exceed trillion dollars annually via major Stablecoins such as USDC and USDT. With the passage of the last “genius law”, which provides a clear regulatory framework, both major street users and Wall Street are adopted for everything from daily savings to international transfers, and moving money faster than the traditional Swift system.

This gives Crypto Real World a benefit, and bitcoin is not part of that story.

So why are companies still buying bitcoin?

basic. It is hedge. A long -term bet against inflation and low traditional currency value. For large companies and even some governments, Bitcoin’s purchase is similar to buying an insurance policy. It is a cellar where you can deceive a portion of the cabinet if there is a global economic crisis. This burial is not useful for buying groceries, but it may be the savior on the road.

This is why the price does not fly despite the purchasing frenzy. Defense demand, not speculation. The market no longer treats bitcoin like high growth technology stocks anymore. It treats it like the insurance policy.

What does this mean for the future of encryption?

The encryption is now divided into two distinguished worlds:

  • On one side, you have Bitcoin: The Digital Gold, a Saving Asset, long -term hedge against a disaster. It is a valuable store.
  • On the other hand, you have Stablecoins: Digital dollars, use every day to send transactions, spending and settle. They are the benefit engine.

One is a hideout. The other is the currency used in the world abroad. Now, all procedures occur abroad.





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