Bitcoin Demand Rises, Supply Drops: Price Surge Anticipated Amid ETF Popularity

Share on Facebook Share on Twitter

The Essentials in Brief

Bitcoin is currently experiencing high demand and a reduced supply, which could indicate a positive price development. The amount of Bitcoins held by digital asset managers such as trusts, ETFs, and funds has reached historical highs. This is a sign of the ongoing institutional interest in the valuable cryptocurrency.

Bitcoin Funds Exceed 2021 Bull Market

Bitcoin fund holdings have surpassed the values of the 2021 bull market. Daily fund inflows increased significantly in February. According to an analysis of data from Bytetree by AMBCrypto, at the time of writing, nearly 950,000 BTC were locked in these investment vehicles. This exceeds the values seen during the peak of the 2021 bull market.

US Spot ETFs Drive Change

Inflows have increased in recent months, driven by the hype around spot Bitcoin ETFs in the US market. After the spot ETFs got the green light last month, a sharp decline was recorded, exacerbated by outflows from the Grayscale Bitcoin Trust [GBTC]. However, outflows have significantly decreased in February, leading to a steady increase in daily inflows.

Why is this Important?

The more Bitcoins that enter these funds and become immovable there, the scarcer this already rare commodity becomes. With consistently high demand, this supply/demand dynamic would ultimately force a price increase and confirm Bitcoin as a store of value. This sentiment was echoed by well-known on-chain analyst Ted. He noted: “Bitcoin demand is currently exceeding new supply by more than three times… If this continues, there is only one direction for the price, and that is UP!”

Our Assessment

Current trends suggest that the Bitcoin price could continue to rise due to high demand and limited supply. The increasing number of Bitcoins held by institutional investors, as well as the decrease in available Bitcoins on centralized exchanges, could lead to further scarcity and thus a price increase. However, it remains to be seen how market dynamics will develop in the coming months.

Sources: Bytetree, CryptoQuant, AMBCrypto, Aniket Verma, Saman Waris.

Share on Facebook Share on Twitter
Casinos: 48
Profile Bitcoin
Symbol BTC
Coin type Alt Coin
Transaction Speed Slow
  • First cryptocurrency, therefore very widespread
  • Largest selection of casinos among the coins
  • Many BTC based bonus offers
  • Fairly low transaction speed
Price 60.210,00 €
Percent Change 24h 0,06 %
Percent Change 7d -2,75 %
Percent Change 30d -3,83 %
Percent Change 60d -3,56 %
Percent Change 1y 114,88 %
Market Cap 1.187.448.050.966,00 €
Max. Supply 21.000.000
Official Links
Socials Reddit | X | Message Board
Best 3 Bitcoin casinos

Latest News

Created by

As a child, I wanted to be a writer and used to make up stories in my spare time and read them to my younger siblings. During an internship at our local newspaper, I wrote an article about my brother's hobby: Playing poker with friends. Since then, the whole topic of poker and the world of casinos has stayed with me.
Reviewed by
Nerd of Numbers

Last update: 11. June 2024 Logo Advertising transparency

We are independent, transparent and funded by revenue we generate when you sign up at a casino through us.

Our goal is to help you make better decisions when choosing a casino by offering different information, providing filters and comparison tables, and publishing objective content. Thus, we give you the opportunity to research for free, compare casinos and make your decision based on that.

We cannot guarantee that a casino that is very good for us will fit your type of player and your circumstances.

Why trust us?

We work according to transparent editorial guidelines and disclose our testing methods as well as funding. This article may contain links to our partners, but this does not influence our objective view in any way.

We use cookies. By using this site, you accept them.