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 worth from $44k to $67k to date in 2024.

Full Story

Questioning how Bitcoin (and by proxy, the remainder of the crypto market) is nonetheless climbing? Similar!

Trigger — certain, the Bitcoin ETFs have wolfed up ~$7.4B of BTC to date…

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

So how does that work?

A simple parallel is actual property:

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

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

True! However right here’s the difficult half…

Whereas Bitcoin has a worth of $1.3T proper now, little or no of that’s really 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 can be bought).

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

However the factor is — the value doesn’t react to the share 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 price for the remaining 10 months of 2024, that’d result in 60% of the present accessible provide being passed by the top of the yr.

(And provide crunches = worth run ups).