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Crypto Markets Prepare for Super Cycle as Bitcoin ETFs Reclaim 5% of BTC Supply
Spot Bitcoin ETF issuers now control approximately 5% of the total circulating supply; here’s why crypto experts are predicting a bullish “super cycle” over the next leg.
Bitcoin has surged 1,000,000% over the past decade. During the last bull cycle, from mid-October to mid-March 2024, prices rose by more than 175%.
The trend is clear; BTC is still on an uptrend. But over the past four months or so, dynamic shifts have occurred; the big boys were allowed exposure to BTC.
Basically, it’s huge! Even before the US SEC After approving spot Bitcoin ETFs in mid-January, anticipation helped drive demand, forcing prices above 2021 highs.
Now, as spot Bitcoin ETF issuers like ProShares, Fidelity, BlackRock, and Bitwise gobble up thousands of BTC every week, traders are expecting a bullish “super cycle.” According to observers, this sharp increase will be driven by institutions.
But the key question: Will this be the case?
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Spot Demand for Bitcoin ETF Drives Price
Certainly, questions arise about the sustainability of the current upward trend. It is true that prices have increased, but the bulls’ inability to break above $72,000 is suspect. BTC bulls are likely weaker than previous cycles.
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In early May 28, prices retreated after briefly surpassing $70,000. If prices fail to recover today, the likelihood of a further decline below $66,000 will increase. In this case, BTC bulls will be in serious trouble.
If institutions come to the rescue and realign price action in the direction set for Q1 2024, then they will need to grab even more BTC via spot ETFs.
According to Glass knotGrayscale’s GBTC trust holds over 288,084 BTC despite redeeming thousands of BTC since mid-January 2024, when the US SEC approved the product.
Close behind are BlackRock with over 284,000 BTC and Fidelity with approximately over 154,000 BTC.
Spot Bitcoin ETF issuers in the United States dominate. However, they are not the only transmitters. Across Europe, German company BTCE holds over 22,000 BTC on behalf of its clients.
At the same time, the Brazilian fund HASH11 holds almost 8,000 BTC.
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Beyond that, public companies seek visibility. According to BitcoinTreasuries, MicroStrategy, a business intelligence company, currently owns 214,400 BTC.
The Bottom Line: Will a Super Cycle Push BTC Above $100,000?
Since the approval of spot ETFs, trading volume has accelerated, particularly during U.S. trading hours.
This emerging trend is understandable because the dominant transmitters are from the country.
Although pricing plays a crucial role in the pace at which institutions seek exposure to spot Bitcoin ETFsapproval from adults is important.
If bulls manage to break above $72,000, or even $73,800, institutional interest in the coin will likely increase, triggering a super cycle that will take BTC above $100,000.
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Warning: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose your entire capital.