What’s Going On With Bitcoin’s Price?

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Bitcoin’s price is just 10% below all-time highs, but market sentiment has not been great over the past weeks. What is going on? And what is our long-term outlook for bitcoin?

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📉 What’s Happening to the Price?

It has been 98 days since bitcoin reached a daily all-time high of $73,800. Since then, bitcoin has remained range-bound between $56,500 and $72,200. 

Why isn’t the price going higher? A few explanations come to mind:

  • There are a lot of shorts: The total amount of short interest in bitcoin has risen by over $10 billion since March, which has the short-term effect of suppressing bitcoin’s price.
  • AI boom: The stock market is soaring, now at all-time highs. Investors are focused on the AI boom, diverting attention from bitcoin.
  • ETF flows: While Bitcoin ETF flows were positive in May, significant outflows over the past few weeks have had a negative impact on sentiment.

Range-bound periods like these are normal in bitcoin bull markets. In the month before previous halvings, the average price rise was 19%, versus just a 1.7% price rise in the month after.

It's easy to get caught up in today's market sentiment, but let's zoom out and look at one of many reasons why we believe Bitcoin will continue to be the best store of value in the long run.

🏛️ Debt Interest = 3rd Biggest Expense

As of Q1 2024, the Federal government is paying more in interest on its loans than on the defense budget, both separately making up 13% of the national budget. Only Medicare (14%) and Social Security (21%) spending still exceed interest payments.

The reason for this rapid increase is largely due to rising interest rates as the U.S. Treasury renews bonds at higher rates.

Politicians can do little to reverse the course of our deficits without losing popularity, so government spending will likely continue to increase in the long term. With each passing year, more people will realize there is no turning back. And that owning some bitcoin to protect your wealth is a sensible choice. 

🆓 Free Monthly Withdrawals 

Some people worry about what the price will do in the short term. Others perfect their setup to acquire as much bitcoin as possible before the price goes up in the long term. We recently launched free monthly withdrawals to help our clients do just that.

Stacking sats into self-custody is as simple, cost-effective, and efficient as possible:

✅ Set up a zero-fee recurring order
✅ Set up an auto-withdrawal to self-custody
✅ Pay no fees on that withdrawal (assuming one per month)