You can't deny the release of bitcoin Spot ETF has done wonders for the price of bitcoin and other cryptocurrencies in general. These ETFs now have bitcoin-ether-etfs-monday/” target=”_blank” rel=”nofollow”>unlocked institutional demand in the largest crypto asset in the world to change the dynamics before the next halving. On the other hand, recent tensions between Iran and Israel have seen bitcoin fall as low as $61,000 in the last 24 hours to undo weeks of price increases.
bitcoin ETF Wallets Now Whale Addresses
Institutional demand for bitcoin has been increasing since the beginning of the year by the issuers of the different bitcoin Spot ETFs. These funders have been acquiring bitcoin left and right and now hold 4.27% of the total btc supply, as noted by on-chain analytics platform IntoTheBlock.
These whale wallets have now joined an extensive list of whales on the bitcoin networkbtc” target=”_blank” rel=”nofollow”> who collectively own 11% of the total circulating supply.
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Unlike previous btc halvings, this time there is a new source of demand coming from the traditional institutional sector.
Recently introduced bitcoin ETFs drive institutional demand, leading to ETF portfolios already accumulating 4.27% of bitcoin supply. pic.twitter.com/volLU15Wgd
– IntoTheBlock (@intotheblock) twitter.com/intotheblock/status/1779112354355040739?ref_src=twsrc%5Etfw” rel=”nofollow”>April 13, 2024
It is worth mentioning that BlackRock IBIT and Fidelity's FBTC ETFs have emerged as leaders of the pack. According x.com/BitMEXResearch/status/1779079107432579581″ target=”_blank” rel=”nofollow”>data from BitMEX ResearchThese 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. bitcoin-breaks-through-69000-setting-new-record/” target=”_blank” rel=”nofollow”>reach a new all-time high of $73,737 and underlined its potential as a mainstream asset class. However, a brewing conflict between Iran and Israel appears to be undoing months of this price increase. Notably, bitcoin has seen a notable drop to $61,000 from $67,800 in the last 24 hours.
However, fundamentals point to this price drop being temporary and the crypto is already reversing most of this loss. At the time of writing, bitcoin is trading below the price of $65,000.
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bitcoin is now trading at $64.330. Chart: TradingView
Changing the dynamics of halving
One of bitcoin-fees-near-cycle-lows-halving-change-this/” target=”_blank” rel=”nofollow”>such foundations point to a stable bitcoin price increase in the coming months is the next bitcoin halving. Investors are steadily getting closer to the outcome of this halving, and the bitcoin blockchain is now less than 1,000 blocks away from the next event.
Past halvings alone have led to an increase in the price of bitcoin in the days following the halving. bitcoin saw an increase of more than 7,000% in the months following the first halving in 2012. The halving in July 2016 caused a price increase of 3,000% in the months after. The most recent halving in May 2020 led to a nearly 1,000% increase in the following months.
As IntoTheBlock noted, the upcoming halving is different from the previous ones. Unlike the last three halvings, there is “a new source of demand coming from the institutional sector” through bitcoin Spot ETFs. TO repeat of previous halving The results could easily see bitcoin surpass the $100,000 price level.
Featured image from Pixabay, TradingView chart
Disclaimer: The article is provided for educational purposes only. It does not represent NewsBTC's views on whether to buy, sell or hold investments, and investing naturally carries risks. It is recommended that you conduct your own research before making any investment decisions. Use the information provided on this website at your own risk.
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