Bitcoin At Risk Of Supply Shock As ETF Issues Buy More BTC Than Was Produced In December
The world’s largest cryptocurrency could be at risk of collapse supply shock Demand for U.S. (US) spot Bitcoin exchange-traded funds (ETFs) has surged far beyond expectations. December 2024, adopted Spot Bitcoin ETF Mining volumes more than tripled in the same month, highlighting the severe imbalance between supply and demand.
Spot Bitcoin ETF raises supply shock risk
December 2024, US Spot Bitcoin ETF Purchased A staggering 51,500 BTC. On the other hand, according to statistics, BTC miners only produced 13,850 Bitcoins during the same period. data From Blockchain.com. This shows that the Bitcoin ETF alone purchased nearly four times the amount bitcoin miner Produce and supply the market that month.
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according to ReportDemand for the ETF was very high in December, exceeding available supply by about 272%. this huge Increased demand for spot Bitcoin ETFs This has raised concerns about a potential Bitcoin supply shock, which analysts say could happen soon.
Specifically, cryptocurrency analyst Lark Davis Announce In early December, “a massive supply shock was coming.” Analysts make this shocking prediction based on massive BTC accumulation US Spot Bitcoin ETF. Davis revealed that at one point in December, the BTC ETF had purchased 21,423 BTC; at the same time, miners had only produced 3,150 BTC around the same time.
The analyst also famous As of December 17, 2024, global BTC ETFs held approximately 1,311,579 BTC. This amount is worth $139 billion and represents 6.24% of the total BTC supply of 19.8 million. Given this staggering number, Davis predicts that spot Bitcoin ETFs could hold 10-20% of Bitcoin assets at the peak of the bull market. The total supply of BTC, raising concerns about a major supply shock.
Spot BTC inflows concentrated in December
data Glassnode revealed that net inflows into spot Bitcoin ETFs totaled $4.63 billion in December, almost double the monthly average of $2.77 billion in 2024. It is worth noting that Glassnode revealed that, Spot Bitcoin ETF Inflows The first half of the month is more concentrated, and the second half of the month is more concentrated. flow outbut December 26 is an exception.
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Not surprisingly, the timing of this surge and subsequent Bitcoin ETF inflows drop This is consistent with the price trend of BTC in December. At the beginning of the month, BTC showed an upward momentum, soaring to New ATH over $108,000 on December 17, driven by bull market hype and surging demand. However, after this peak, BTC price drops sharplyThe drop coincided with significant outflows from spot Bitcoin ETFs, Glassnode reported.
Despite surge in demand for spot Bitcoin ETFs in December, new data It shows that investors have continued the trend of increasing their holdings until January 2025. On January 3, investors purchased over $900 million worth of BTC through spot Bitcoin ETFs. Recently, the U.S. Spot Bitcoin ETF purchased an additional 9,500 BTC, worth more than $966 million based on current market prices.
Featured image created using Dall.E, chart from Tradingview.com
