Bitcoin 'Treading Water' Even After $1.3 Billion Secret Deal... What's the Real Problem?

▲ Bitcoin (BTC)

As Bitcoin (BTC) struggles to find direction despite major institutional trades and regulatory advancements, the market is simultaneously highlighting liquidity maturity and the absence of an investment narrative.

According to Stocktwits on May 31 (local time), SkyBridge Capital founder Anthony Scaramucci positively assessed a dark pool block trade worth approximately $1.3 billion that occurred in BlackRock's IBIT. Scaramucci stated that the trade demonstrated “tremendous liquidity” around the Bitcoin market and proved that “the Bitcoin market continues to mature.”

Stocktwits reported that these remarks came after the approximately $1.3 billion IBIT dark pool block trade on Tuesday. Dark pool trades are a method of privately negotiated transactions used by institutional investors to avoid immediate impact on market prices. This trade was considered one of the largest institutional Bitcoin spot ETF trades in history.

However, increased institutional participation has not immediately translated into Bitcoin price momentum. Scaramucci stated that the current market is dealing with “Bitcoin with reduced correlation,” and that Bitcoin has fallen approximately 40% from its high of over $126,000 and “no longer moves” despite significant advancements across the industry. According to Stocktwits, Bitcoin has fallen approximately 4% in the last week, and Stocktwits' individual investor sentiment remained in the ‘extremely bearish’ zone.

Galaxy Digital CEO Mike Novogratz diagnosed that Bitcoin has currently lost its compelling investment narrative. Novogratz assessed that cryptocurrencies are “stuck between narratives” as investor interest shifts to momentum themes like artificial intelligence (AI) and memory stocks. While he views the progress of the US cryptocurrency market structure bill as a positive factor for the industry and the economy as a whole, he explained that other variables emerge whenever regulatory momentum nears its final stage, making it difficult for Bitcoin to continuously capture investor attention.

On-chain analyst Ki Young Ju, founder of CryptoQuant, also expressed a cautious view. Ki Young Ju analyzed that Bitcoin's current market cycle could continue until early 2027. He explained that historical profit-taking phases typically last about 18 months, and the conditions necessary for a sustainable trend reversal are not yet confirmed by on-chain data.

Stocktwits reported that while large institutional trades demonstrated the deep liquidity and maturity of the Bitcoin market, the price remains significantly down from its peak. The inability of the market to find a strong bullish narrative, despite the simultaneous emergence of institutional liquidity, regulatory advancements, and long-term cycle discussions, was presented as Bitcoin's main current burden.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*