The Bitcoin community is currently full of discussion topics regarding the emergence of cryptocurrencies. “supply shock” which is a market phenomenon in which the demand for an asset exceeds the available supply As a result, the price of the asset may skyrocket. And currently many indicators are pointing in the same direction. This event may be closer than many people predict.
1 Growing Demand for Bitcoin ETFs
Since the launch of Bitcoin ETFs, they have received a lot of attention. As a result, the demand for Bitcoin continues to increase. This massive buying pressure was slowed by large capital outflows from the Grayscale Bitcoin ETF (GBTC).
However, after 13 days, GBTC outflows began to slow down (yesterday: $220.7 million, previously: $191.7 million), while other ETF providers saw capital outflows. Net inflows totaled about $250 million over the past two days.
Dan Ripoll Managing Director of Swan Detailed Analysis The Spot Bitcoin ETFs have purchased 150,500 BTC in just 13 days, representing an average purchase rate of 12,000 BTC per day. To put it simply, there is currently only 900 BTC new Bitcoin produced per day, meaning that Bitcoin ETF purchases are 13 times higher than the rate of new production.
Moreover, over the next 3 months, the rate of new Bitcoin production will be cut in half in a halving event, which will result in an imbalance between supply and demand. Meanwhile, the rate of Bitcoin ETF purchases is 26 times higher than the rate of new production.
The #Bitcoin spot ETFs have already snatched up 150,500 #BTC in just 13 trading days.
They are buying at a rate of 12,000 BTC per day.
Now, let’s KISS (keep it simple stupid) 👇
There are only 900 BTC per day being issued.
BTC is being bought up at a rate of 13x daily… pic.twitter.com/blT4jzttqS
— Rip VanWinkle ⚡️ (@danieleripoll) January 31, 2024
Moreover, Alessandro Ottaviani, a respected Bitcoin analyst, alsoEmphasis onPotential market changes, stating that “Bitcoin ETF inflows will now always be higher than Grayscale outflows, and the only way to support that demand is for the Bitcoin price to rise as Bitcoin prices reach… At levels of $60,000 or more, Institutional FOMO events are fully triggered. And it will be something that humans have never experienced before.”
WhalePanda, a famous analyst in the crypto industry has highlighted recent activities that support the trend of Bitcoin “supply crisis” follows:
“Yesterday there was a net inflow of nearly $250 million into Bitcoin ETFs, specifically BlackRock bought $300 million, inflows of $250 million two days in a row. But yesterday’s price has not increased much. If there were another few days like this I can guarantee that This supply crisis will affect BTC prices.”
2 Bitcoin Sales of Large Bitcoin Miners Absorbed
Despite the massive movement of Bitcoin from miner wallets to exchanges, the Bitcoin price has remained stable and has not fallen sharply, according to Cryptoquant.
“Yesterday, Bitcoin movement volumes from miner wallets to spot exchanges were the highest since May 16, 2023. In total, more than 4,000 BTC flowed onto exchanges. This represents a sales force of approximately 173 million dollars. However, this sales force was able to be absorbed smoothly by the market.”
Important points to note are: Despite the continued movement of Bitcoin out of miner wallets, the amount of Bitcoin remaining in miner wallets has remained stable since early January 2024, resulting in no significant decline in the Bitcoin price. important
3 Stablecoins also known as “Dry Powder” are on the rise.
The overall market capitalization of a stablecoin is an early indicator of the trend of crypto market movements. Recently, the total value of stablecoins has recovered significantly. It has gone from a low of $119.5 billion in mid-October 2023 to close to $130 billion.
This increase in stablecoin reserves is often interpreted as “dry powder or cash reserves” ready to be invested in assets such as Bitcoin, potentially accelerating the supply and demand mechanism further.
Alex Svanevik, founder of Onchain data analytics platform Nansen, spoke about the relationship between stablecoin reserves and BTC prices: “When a stablecoin on an exchange reaches its peak, BTC price also peaks.”
Source: newsbtc
2024-02-01 02:21:59
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