Bitcoin ETF Issuers Push Holdings To 4.27% Of BTC Supply Amid Crash To $61,000
April 14 2024 - 11:00AM
NEWSBTC
There’s no denying the launch of Spot Bitcoin ETFs has done wonders
for the price of Bitcoin and other cryptocurrencies in general.
These ETFs have now unlocked institutional demand into the world’s
largest crypto asset to change the dynamics ahead of the next
halving. On the other hand, recent tensions between Iran and Israel
have seen Bitcoin falling to as low as $61,000 in the past 24 hours
to undo weeks of price increases. Bitcoin ETF Wallets Now
Whale Addresses The institutional demand for Bitcoin has been
ramping up since the beginning of the year from the issuers of the
various Spot Bitcoin ETFs. These fund providers have been scooping
up Bitcoin left and right, now holding 4.27% of the total BTC
supply, as noted by on-chain analytics platform IntoTheBlock.
Related Reading: Polkadot Shines – Is Now The Time To Buy DOT
Before $10? These whale wallets have now joined an extensive list
of whales on the Bitcoin network who collectively own 11% of the
total circulating supply. Unlike past BTC halvings, this time
there’s a new source of demand coming from the traditional
institutional sector. The newly introduced Bitcoin ETFs drive
institutional demand, leading to ETF wallets already amassing 4.27%
of the Bitcoin supply! pic.twitter.com/volLU15Wgd — IntoTheBlock
(@intotheblock) April 13, 2024 It is noteworthy to mention that
BlackRock’s IBIT and Fidelity’s FBTC ETFs have positioned
themselves as the lead of the pack. According to data from BitMEX
Research, these two spot ETFs now hold 405,749 BTC at the close of
the trading session on April 12. This surge of institutional
money has fueled Bitcoin’s meteoric rise to a new all-time high of
$73,737 and underscored its potential as a mainstream asset class.
However, a brewing conflict between Iran and Israel seems to be
undoing months of this price increase. Particularly, Bitcoin has
seen a noteworthy drop to $61,000 from $67,800 in the past 24
hours. Fundamentals, however, point to this price drop being
temporary and the crypto is already reversing the majority of this
loss. At the time of writing, Bitcoin is trading below the $65,000
price mark. Bitcoin is now trading at $64.330. Chart: TradingView
Changing Halving Dynamics One of such fundamentals pointing to a
steady Bitcoin price increase in the coming months is the
approaching Bitcoin halving. Investors are steadily approaching the
outcome of this halving, with the Bitcoin blockchain now less than
1,000 blocks to the next event. Past halvings on their own have led
to a price increase for Bitcoin in the days post-halving. Bitcoin
went on a surge of over 7,000% in the months after the first
halving in 2012. The halving in July 2016 led to a 3,000% price
surge in the months after. The most recent halving in May 2020 led
to a surge of almost 1,000% in the months after. Related Reading:
Bitcoin Below $70,000: Is $80K Still Possible, Or Is The Rally
Over? As noted by IntoTheBlock, the approaching halving is
different from previous ones. Unlike the last three halvings,
there’s “a new source of demand coming from the institutional
sector” through Spot Bitcoin ETFs. A repeat of past halving
outcomes could see Bitcoin easily surging above the $100,000 price
level. Featured image from Pixabay, chart from TradingView
Polkadot (COIN:DOTUSD)
Historical Stock Chart
From Jul 2024 to Aug 2024
Polkadot (COIN:DOTUSD)
Historical Stock Chart
From Aug 2023 to Aug 2024