Bullish Expert Tom Lee Explained Why Bitcoin Could Not Rise!

Tom Lee, co-founder of Fundstrat Global Advisors, known for his bold predictions about Bitcoin (BTC), made new statements regarding Bitcoin.

He answered the question that everyone was curious about and explained why Bitcoin has not been able to rise despite the rapidly increasing institutional demand.

Starting his remarks by stating that the US spot Bitcoin ETFs are among the most successful ETF launches in history, Tom Lee mentioned that the ETFs have seen strong inflows recently.

Lee stated that this means there is unprecedented demand for Bitcoin, yet despite this demand, the BTC price has not risen and has not met expectations.

At this point, the master stated that one of the reasons behind the price stagnation in Bitcoin is related to how these ETFs are acquired.

Lee stated that some of the corporate entries occurred not as new purchases from outside, but through a method called "in-kind" transfer.

According to Yni Lee, the inflows into ETFs occurred not by buying new BTC, but by investors who already own Bitcoin transferring their assets from their cold wallets to the Bitcoin ETF manager's wallet.

Since these transactions do not create new buying pressure on Bitcoin, they do not push the price up.

"I see this process in Bitcoin as a kind of neutral transfer.

New Bitcoins are not being acquired and existing BTCs are being moved, so there is no significant effect on the price.

Because the price of Bitcoin follows a simple supply-demand mechanism.