A Viral Question Is Puzzling Bitcoin Fans: Why Isn't the Price Rising?

Gizmodo

a day ago

A question is going viral on social media, reflecting the confusion shared by Bitcoin skeptics and believers alike.
'Can anyone explain to me why companies are buying billions of dollars of Bitcoin every week and the price is virtually unchanged over the last 6 months?' one user posted on X on June 27. 'Explain it to me like I'm 5.'
Can anyone explain to me why companies are buying billions of dollars of bitcoin every week and the price is virtually unchanged over the last 6 months?
Explain it to me like I'm 5.
— ₿itcoin Cam (@btctmac) June 27, 2025The post quickly generated nearly two million views because it strikes at the heart of Bitcoin's strange new reality. The world's most famous cryptocurrency hit an all time high of $111,814 on May 22, according to data firm CoinGecko.com. But since then, it has stagnated. It pulled back and is now trading around $106,000. Despite a wave of big money flowing in from companies like MicroStrategy, hedge funds, and even foreign governments, the price has barely moved.
🥁 The BITCOIN 100 List 👇 6/30/2025
✅ 20 companies increased their Bitcoin treasury (+14,200 BTC)✅ The Top 100 companies HODL nearly 850,000 Bitcoin 👇 pic.twitter.com/7oC8GOwKU3
— HODL15Capital 🇺🇸 (@HODL15Capital) June 30, 2025With that kind of demand, you would expect prices to skyrocket.
Strategy has acquired 4,980 BTC for ~$531.9 million at ~$106,801 per bitcoin and has achieved BTC Yield of 19.7% YTD 2025. As of 6/29/2025, we hodl 597,325 $BTC acquired for ~$42.40 billion at ~$70,982 per bitcoin. $MSTR $STRK $STRF $STRD https://t.co/xvWnSkfukS
— Michael Saylor (@saylor) June 30, 2025But they have not. Why?
To understand what's happening, you have to understand what Bitcoin has become: digital gold. People primarily buy it to hold it for the long term, not to spend it. When large investors buy Bitcoin, they usually transfer it off exchanges and lock it away in secure 'cold storage' wallets.
This creates a strange situation. A huge amount of Bitcoin is being purchased, but very little of it is being actively traded. While this reduces the available supply, it does not automatically push the price up unless a rush of new, speculative buyers enters the market. Right now, that rush has not come. For every motivated buyer, there seems to be an equally motivated seller.
'Somebody else is selling it,' says legendary financier Jim Chanos, famous for his winning bet against Enron.
Somebody else is selling it.
I explained it like you were two.
It's also the explanation if you were a genius. https://t.co/zAcNbyLFkr
— Clifford Asness (@CliffordAsness) June 27, 2025The explanation is simple supply and demand. 'It's because the sellers are just as motivated to sell at current prices as buyers are to buy,' explains Peter Schiff, chief economist & global strategist at Europac.com and one of the most fervent critics of Bitcoin maximalists.
The question was why hasn't all the buying caused the price of Bitcoin to go up. It's because the sellers are just as motivated to sell at current prices as buyers are to buy.
— Peter Schiff (@PeterSchiff) June 27, 2025While Bitcoin has been stuck in place, stablecoins have become the real stars of the crypto world. A stablecoin is a type of cryptocurrency designed to hold a steady value, usually pegged one to one with the U.S. dollar. They are not meant to be a speculative investment. Instead, they are designed to be used.
Think of them as the Venmo or PayPal of crypto, but usable anywhere in the world, 24/7, without needing a bank. And their usage is exploding, with transaction volumes now exceeding trillions of dollars annually across major stablecoins like USDC and USDT. With the recent passage of the 'Genius Act,' which provides a clear regulatory framework, both Main Street users and Wall Street banks are adopting stablecoins for everything from daily savings to international transfers, moving money faster than the traditional SWIFT system.
This is giving crypto real world utility, and Bitcoin isn't really part of that story.
Simple. It's a hedge. A long term bet against inflation and the devaluation of traditional currencies. For large corporations and even some governments, buying Bitcoin is like buying an insurance policy. It's a vault where you can stash a portion of your treasury in case of a global economic crisis. That vault isn't useful for buying groceries, but it might be a lifesaver down the road.
This is why the price isn't flying despite the buying frenzy. The demand is defensive, not speculative. The market isn't treating Bitcoin like a high growth tech stock anymore. It's treating it like an insurance policy.
Crypto is now splitting into two distinct worlds:
One is a bunker. The other is the currency being used in the world outside. And right now, all the action is happening outside.