World’s largest crypto may face a threat supply shock As demand for United States (US), Spot Bitcoin Exchange Traded Funds, (ETFs), has surged beyond expectations. The volume of BTC purchased through the exchanges in December 2024 will be far greater than expected. Spot Bitcoin ETFs More than tripled amount of mined that same month. This shows the stark imbalance between demand and supply.
Bitcoin ETFs that trigger supply shocks
US Spot Bitcoins ETFs will be available in December 2024 purchased An astonishing 51.500 BTC. According to BTC Miners, they produced just 13,850 BTC coins in the same time period. data From Blockchain.com. The Bitcoin ETFs purchased alone nearly four times as much. BTC miners The amount of product generated in a given month and the quantity sold on that market.
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As per reportsThe demand for ETFs was extraordinary in December, with the supply exceeding by about 272%. This massive increase in demand for Spot Bitcoin ETFs The analysts have warned that this could be imminent.
Lark Davies, a cryptocurrency analyst. announced In December earlier, “a massive supply shock is imminent.” This alarming prediction was based on the accumulation of BTC by analysts. US Spot Bitcoin ETFs. Davis revealed that BTC ETFs bought 21,423 BTC at some point during December; however, the miners produced just 3,150 BTC.
Analysts also noted BTC ETFs worldwide held around 1,311,579 BTC on December 17, 2024. The $139 billion amount represents 6.24% BTC’s 19.8 million total supply. Davis predicts that Spot Bitcoin Exchange Traded Funds (ETFs) could account for 10-20% during the peak phases of bull markets. BTC’s total supply, This is causing more concern about an upcoming supply shock.
Focused Inflows of Spot BTC from December
Data Glassnode reported that Spot Bitcoin exchange-traded funds (ETFs) recorded an inflow of $4.63billion during December. That is nearly double the monthly average for 2024, which was $2.77billion. Glassnode revealed that the increase in Spot Bitcoin ETFs was a result of a surge in Spot Bitcoin ETF inflows The first half of this month saw a greater concentration, while the second was characterized by a decrease. outflowsException being December 26,
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It is not surprising that the timing of these surges and their subsequent decline in Bitcoin ETF inflows The price of BTC in December is aligned with the influx. BTC was on a strong upward trend at the beginning of this month. It soared up to A new ATH above $108,000 The bull market hype fueled the demand and led to a spike in December 17. Following this peak, however, BTC’s price saw a sharp declineGlassnode reports that this drop was synchronized with significant withdrawals from Spot bitcoin ETFs.
The demand for Spot ETFs of Bitcoin in December was a surge. data The accumulation pattern of investors has continued into 2025. Spot Bitcoin ETFs sold BTC for over $900 Million on Jan. 3. US Spot Bitcoin ETFs have recently acquired 9,500 BTC worth $966 Million at current market prices.
Featured image was created using Dall.E chart, from Tradingview.com
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Source: www.newsbtc.com
