Bitcoin ETFs are absorbing the BTC available for purchase
Despite the slight correction in Bitcoin price action in the last few hours the bullish orientation took control again this if we take into account that already the price returned to the $71,437 area according to data at Coingecko at the time of writing.
In the latest article socialized by columnist William Suberg on the Cointelegraph news platform, "Bitcoin as an institutional investment allocation is just getting started, industry participants have said, as U.S.-based Bitcoin spot exchange-traded funds (ETFs) gain momentum."
An interesting given is that, "ETFs held more than 30,000 BTC last week, and given that there are more than 3 million BTC in exchange and miner wallets, the odds of a supply-induced price shock become apparent."
On the other hand, "Given BTC's price gains since the launch of ETFs in January, popular commentator WhalePanda points out that the dollar value of GBTC's diminished BTC holdings has, in fact, barely declined."
The lines in Suberg's article also let read or the following, "Once a sell-side liquidity crunch occurs, its next cyclical peak may exceed our expectations due to limited sell-side liquidity and thin order book"
SOURCES CONSULTED
Cointelegraph. Bitcoin has 6 months until ETF ‘liquidity crisis’ — New analysis. Link
OBSERVATION:
The cover image does not belong to the author: @lupafilotaxia, the image was taken from: Cointelegraph
