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"Demand shock" Bitcoin Shakes: ETFs are gobbling up cryptocurrency faster than they can mine it



I witnessed Cryptocurrency Bitcoin It has risen significantly in recent weeks, with its price reaching $64,000 on some exchanges. This rise is partly due to the growing demand for Bitcoin exchange-traded funds (ETFs). Which allows investors to buy and sell cryptocurrencies without having to own them.


As a CoinShares report says: Bitcoin ETF Application The immediate impact has a profound impact on the cryptocurrency market. These funds demand 2,800 BTC daily while only 900 BTC are mined during the same period.



Strong demand for digital currency Bitcoin ETFs



Bitcoin briefly hit $64,000 on some exchanges on Wednesday. Fueled by growing demand for the largest digital currency by market capitalization, thanks to the growing popularity of spot Bitcoin ETFs.


Bitcoin BTC Daily Price Chart
Bitcoin BTC Daily Price Chart

Supply shortage


“While 900 BTC is produced per day, the new US ETFs require 2,800 BTC per day,” James Butterville, head of research at CoinShares, told The Block. “This has led to a 28% decline in foreign currency holdings since 2020, indicating a market facing a significant demand shock. »


Standard height


Spot Bitcoin ETFs once again broke a daily trading volume record on Wednesday. The price of the digital currency ranged around $60,000. Bitcoin is up 5.52% on the day and almost 40% over the past month. Coinciding with the start of Bitcoin ETF spot trading on January 11.


Read also: Beyond $60,000 for Bitcoin: New Factors for Continued Bullish Enthusiasm


Factors Affecting Bitcoin Price



Bitcoin briefly hit $64,000 on some exchanges on Wednesday. People are looking to better understand what's driving the price rise, according to Butterville.


“Raised a peak Bitcoin BTC Price “Until recently, Bitcoin prices were closely tied to expectations of interest rate cuts, but have since deviated following the introduction of spot Bitcoin ETFs in the United States. These funds have significantly influenced recent trends prices.


New records


Bitcoin ETF Trading Volumes


And according to James Seyphart, ETF Research Analyst at Bloomberg Intelligence The Spot Bitcoin ETF hit a new daily high on Wednesday with over $6 billion traded.


“The high volume was enough to surpass the previous daily record set on launch day.”







Of confidence



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أخبار,الأسواق,تحليلات,العملات الرقمية,بيتكوين,صناديق ETF

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