Markets
Crypto Markets Brace for Super Cycle as Bitcoin ETFs Capture 5% of BTC Supply
Spot Bitcoin ETF issuers now control approximately 5% of the total circulating supply; that’s why cryptocurrency experts predict a bullish “super cycle” in the next phase.
Over the last decade, Bitcoin has increased by 1,000,000%. In the latest bull cycle, from mid-October to mid-March 2024, prices increased by more than 175%.
The trend is clear; BTC is always in an uptrend. But, in the last four months or so, there have been changes in the dynamics; the big guys were allowed to gain exposure to BTC.
Basically, this is huge! Even before US SEC Spot Bitcoin ETFs approved in mid-January, the anticipation helped spur demand, forcing prices above 2021 highs.
Now, as spot issuers of Bitcoin ETFs like ProShares, Fidelity, BlackRock, and Bitwise gobble up thousands of BTC each week, traders expect a bullish “super cycle.” The clear advantage, observers say, will be driven by institutions.
But the key question: It will be like this?
DISCOVER: What are the best cryptocurrencies to buy right now?
Spot demand for Bitcoin ETFs determines the price
It is true that there are questions about the sustainability of the current upward trend. True, prices have risen, but the failure of the bulls to break above $72,000 is suspicious. BTC bulls are likely weaker than in past cycles.
(BTCUSD)
Early on May 28, prices bounced back after briefly topping $70,000. If prices fail to recover today, the likelihood of a further drop below $66,000 will increase. In that case, BTC bulls would be in serious trouble.
If institutions come to the rescue and realign the price action in the established direction in the first quarter of 2024, then they will have to raise even more BTC via spot ETFs.
Second GlassnodeGrayscale’s GBTC trust holds over 288,084 BTC despite having redeemed thousands since mid-January 2024, when the US SEC approved the product.
Closely followed by BlackRock with over 284,000 BTC and Fidelity with approximately over 154,000 BTC.
Spot Bitcoin ETF issuers dominate in the US. However, they are not the only issuers. Across Europe, Germany’s BTCE holds over 22,000 BTC on behalf of its clients.
At the same time, the Brazilian fund HASH11 holds almost 8,000 BTC.
DISCOVER: How to buy Spot Bitcoin ETF in May 2024
Beyond that, public companies seek visibility. According to BitcoinTreasuries, MicroStrategy, a business intelligence firm, currently holds 214,400 BTC.
Conclusion: Will a super cycle push BTC above $100,000?
Since the approval of spot ETFs, trading volume has gained momentum, especially during trading hours in the United States.
This emerging trend is understandable because the dominant broadcasters are from the country.
Although prices play a crucial role in the pace at which institutions seek exposure Spot Bitcoin ETFthe approval of adults is important.
If the bulls manage to surpass $72,000, even surpassing $73,800, institutional interest in the coin will likely increase, triggering a super cycle that will take BTC above $100,000.
TO EXPLORE: Crypto Whales Rinsed by Latest Phishing Scam: Here’s How to Avoid Loss of $6.9 Million
Disclaimer: Cryptocurrencies are a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all your capital.