Wall Street Influence Alters Bitcoin Rallies, Says 10x Research
Market shifts driven by Wall Street traders and profit-taking have changed traditional Bitcoin price surges, according to 10x Research founder Markus Thielen.
This is news, not investment advice. NexVani Media is not a SEBI-registered investment adviser and does not recommend buying or selling any security. Do your own research or consult a registered adviser before investing.
Traditional consecutive double-digit price spikes in the cryptocurrency market have become less frequent as financial institutions and profit-taking participants reshape trading dynamics, according to 10x Research founder Markus Thielen. In a recent market discussion, Thielen explained that Wall Street traders selling call options following upward movements have dampened the violent price explosions seen in previous market cycles.
Thielen, author of the industry history Crypto Titans, noted that each market cycle introduces different types of promoters and investors. Current participants coming from traditional financial sectors trade heavily on macroeconomic data and central bank decisions. Consequently, Bitcoin tends to climb rapidly on news events before experiencing sideways movement ahead of major macro announcements.
Wall Street trading behavior and options hedging have reshaped traditional Bitcoin price rallies.
Analysis of Form 13F filings indicates that market makers could account for up to half of the reported spot exchange-traded fund inflows. Because these institutions maintain holdings primarily to hedge options positions, their allocations do not necessarily reflect direct bets on long-term price increases. Meanwhile, early fund inflows also incorporated retail participants purchasing through corporate structures and institutional vehicles.
Despite shifting market mechanics, Thielen maintains a projection for Bitcoin to reach $90,000 by the end of the year, though he suggests a temporary dip into the mid-to-high $70,000 range could precede that movement. Price recovery trajectories and borrowing rate adjustments from the Federal Reserve remain critical variables for upcoming market direction. Furthermore, Thielen expressed a bearish outlook on Ether, arguing that current Layer-2 developments and reduced transaction fees diminish financial benefits for token holders compared to alternative trading platforms.
Why it matters
These market shifts illustrate how traditional financial institutions and macroeconomic policies increasingly influence digital asset trading patterns. The evolving participation of institutional investors affects price volatility and alters how cryptocurrencies respond to global economic indicators.