How the Heck Is Bitcoin Still Climbing??

TL;DR

The $7.4B invested by ETFs over Jan/Feb, makes up ~6% of the present provide accessible on the market, and has helped push the BTC value from $44k to $67k up to now in 2024.

Full Story

Questioning how Bitcoin (and by proxy, the remainder of the crypto market) remains to be climbing? Similar!

Trigger — positive, the Bitcoin ETFs have devoured up ~$7.4B of BTC up to now…

However Bitcoin is valued at $1.3T in complete proper now, and $7.4B price of funding is a drop within the ocean by comparability.

So how does that work?

A straightforward parallel is actual property:

If there are extra patrons than there are sellers, dwelling costs will go up.If there are much less patrons than there are sellers, dwelling costs will go down.

“What is that this, novice hour? You assume I don’t already know that!?” — you, in all probability.

True! However right here’s the tough half…

Whereas Bitcoin has a worth of $1.3T proper now, little or no of that’s truly accessible on the market on public exchanges.

There’s about 1.8M BTC (~$122B) on exchanges as of this writing (which doesn’t assure they’re up on the market — it simply means they are often offered).

So at first look, that $7.4B funding right into a $1.3T asset is…what? A purchase order of 0.56% of the overall provide? That’s not sufficient to maneuver the needle.

However the factor is — the value doesn’t react to the proportion of complete provide being purchased, however accessible provide.

The $7.4B invested by the BTC ETFs over Jan/Feb, makes up ~6% of the present accessible provide, and has helped push the value from $44k to $67k.

Now, right here’s the kicker!

If the ETFs proceed to purchase at an analogous charge for the remaining 10 months of 2024, that’d result in 60% of the present accessible provide being passed by the tip of the yr.

(And provide crunches = value run ups).