The latest on-chain data analysis shows that the money supply in the Bitcoin market is tightening, with strong accumulation pressure, while price volatility tends to decrease.
Bitcoin supply from long-term investors continues to increase, with net cash flow from retail investors reaching 19,300 BTC per month, far exceeding the newly issued monthly amount of 13,400 BTC. This is a positive signal for stability and long-term price growth potential.
MAIN CONTENT
On-chain Bitcoin supply continues to shrink due to accumulation by long-term investors.
Assets under management of US Bitcoin ETFs reached a record $137 billion, accounting for 6.4% of market capitalization.
BlackRock holds up to 55% of ETF market share, significantly contributing to market psychology and pricing.
What is the current state of on-chain Bitcoin supply?
On-chain data from Glassnode shows that Bitcoin supply is diminishing due to strong accumulation cash flow from long-term investors. Retail investors are net buying about 19,300 BTC per month, far exceeding the newly mined Bitcoin amount of 13,400 BTC, creating effective supply reduction pressure.
About 19% of the circulating Bitcoin supply is concentrated around the price range of ±10%, indicating that the market is very sensitive to short-term fluctuations. This is important information that helps investors predict the stability and volatility potential of Bitcoin prices.
"The increasing Bitcoin accumulation flow from long-term investors has significantly reduced circulating supply, laying the groundwork for long-term market recovery."
Michael Sonnenshein, CEO of Grayscale Investments, 6/2024
What role do Bitcoin ETFs in the United States play in the market?
The total assets under management (AUM) of Bitcoin ETFs in the United States have just reached a new all-time high: $137 billion, accounting for 6.4% of the Bitcoin market capitalization. This indicates a remarkable growth in attracting institutional investment into the cryptocurrency market.
Among them, BlackRock's IBIT fund holds about 55% market share, becoming the largest dominating factor. The fund's cost is closely competitive with popular market prices, playing an important role in shaping market psychology and prices for Bitcoin.
"BlackRock's leadership in the Bitcoin ETF market proves that large investment institutions are increasingly placing their trust in the potential of cryptocurrencies."
Laurence Fink, CEO of BlackRock, 4/2024
What is the impact of supply tightening and ETFs on market volatility?
The combination of tightening on-chain Bitcoin supply and the influx of funds from ETFs creates significant accumulation pressure while reducing short-term volatility. Although the inflow into ETFs has shown signs of stagnation recently, the long-term trend remains very positive, demonstrating strong demand from institutional investors.
Investors may expect the market to experience strong volatility but with a solid enough foundation to maintain an upward trend in the medium and long term.
The Meaningful Value Index of net cash flow from retail investors is 19,300 BTC/month, exceeding the newly mined BTC amount, indicating strong accumulation. The total assets under management of US Bitcoin ETFs are $137 billion, accounting for 6.4% of the Bitcoin market capitalization, reaching a record high. IBIT (BlackRock) fund market share is 55%, influencing market psychology and price formation.
Frequently Asked Questions
1. Why is the on-chain Bitcoin supply tightening? Long-term investors are accumulating a lot, especially retail investors net buying exceeds new issuance, reducing the amount of BTC in circulation. 2. How do Bitcoin ETFs affect the market? They help bring large capital from institutions into the market, creating liquidity and positively influencing investor psychology. 3. How does BlackRock dominate the Bitcoin ETF space? Their IBIT fund holds 55% of the US Bitcoin ETF market share, becoming a leading force in the market. 4. What does the concentration of Bitcoin supply around the ±10% price range mean? It indicates that the market is sensitive to short-term fluctuations, which could lead to strong correction phases. 5. What is the current trend of inflows into Bitcoin ETFs? Inflows have recently shown signs of stagnation, but overall still maintain a strong trend, reflecting high institutional investment demand.
Source: https://tintucbitcoin.com/bitcoin-siet-nguon-cung-nha-dau-tu-giu-coin/
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