Inflows from the new spot Bitcoin exchange-traded funds (ETFs) are the major reason BTC has experienced a significant uptick, surpassing the $50,000 level and exceeding $52,000.
According to a tweet by Marc van der Chijs, Bitcoin investor and founder of several crypto firms, including miner Hut 8, ETF issuers are buying more than 10-12x the amount of BTC produced daily, and this is leading to a 2% price increase, which is roughly $1,000, per day.
ETFs’ Impact on BTC’s Price
Chijs’ analysis of the post-ETF Bitcoin charts found that most price increases occur during the settlement period before the U.S. market opens.
Since the inflows are 10-12 times bigger than the amount of newly produced BTC, users have been selling their holdings to fill the ETF orders. These sales usually have higher prices as users do not think BTC is peaking. The higher prices cause more fear or missing out (FOMO) among ETF investors, leading to more demand and, subsequently, increasing USD valuations.
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