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It has now been almost six weeks since the Bitcoin spot exchange-traded funds (ETF) first went live. Let’s break down the numbers.
Week 1: January 15 – 19
The first week of ETF trading was relatively slow, with a net inflow of $318 million. That means that over $300 million worth of Bitcoin was bought that week, after tallying up all of the buyers versus all of the sellers. Bitcoin’s price hovered as a result at $41,000.
Week 2: January 22 – 26
The second week was bloody, with a net inflow of negative $415 million. What that means is that there were more sellers than buyers, and as a result, Bitcoin’s price dipped to a low of $39,500.
Week 3: January 29 – February 2
In the third week, we saw a bounce back towards the positive, with $697 million in net inflows. The price reacted by climbing back up to $42,500.
Week 4: February 5 – 9
And then Week 4 happened, $1.2 billion in net inflows. It was a massive jump and closed the week at $48,000.
Week 5: February 12 – 16
That excitement carried on to Week 5, and from the initial figures, we ended at over $2 billion in net inflows. We have already seen the results of that: Bitcoin’s price is over $52,000 at the time of writing.
Calculations
Every week, 6,300 Bitcoins are mined, but there’s over a billion dollars in fresh capital buying every week. That means there is now a supply shortage of about 14,000 Bitcoins per week, on average. And that is what is causing the price increase: the only way to buy that much Bitcoin is from other people holding it. And as the buy demand increases, so too does the asking price.
In summary, the launch of Bitcoin spot ETFs has fueled substantial capital inflows into the market. Despite fluctuations, the overall trend indicates a growing appetite for Bitcoin. As BTC continues to gain mainstream acceptance, its price trajectory remains a focal point for retail and institutional investors alike.
Via: 2Usethebitcoin.com
