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Crypto Markets Brace for a Supercycle as Bitcoin ETFs Capture 5% of BTC Supply
Bitcoin ETF spot issuers now control about 5% of the total circulating supply; This is why crypto experts predict a bullish “supercycle” in the next leg.
Bitcoin has increased by 1,000,000% in the last decade. In the last bull cycle, from mid-October to mid-March 2024, prices soared by more than 175%.
The trend is clear; BTC is always in an uptrend. But over the past four months, there have been changes in the dynamics; the big ones were allowed to get exposure to BTC.
Fundamentally, this is huge! Even before the United States SEC approved spot Bitcoin ETFs in mid-January, the 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 expect a bullish “super cycle.” The sharp increase, observers say, will be driven by institutions.
But the main question: Will this be the case?
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Bitcoin ETF Spot Price Driving Demand
Certainly, questions are being asked about the sustainability of the current upward trend. It is true that prices have risen, but the bulls’ failure to break $72,000 is suspicious. BTC bulls are likely weaker compared to previous cycles.
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Early on May 28, prices pulled back after briefly breaking $70,000. If prices fail to recover today, the likelihood of further decline below $66,000 will increase. In that case, BTC bulls will be in serious trouble.
If institutions come to the rescue and realign price action in the direction set in the first quarter of 2024, then they should obtain even more BTC through spot ETFs.
According to GlassnodeGrayscale’s GBTC fund holds more than 288,084 BTC, despite redeeming thousands of BTC since mid-January 2024, when the US SEC approved the product.
Following closely behind is BlackRock with over 284,000 BTC and Fidelity with around 154,000 BTC.
Bitcoin ETF spot issuers in the United States dominate. However, they are not the only emitters. Across Europe, Germany’s BTCE holds more than 22,000 BTC on behalf of its clients.
At the same time, Brazil’s HASH11 fund holds almost 8,000 BTC.
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Additionally, public companies seek exposure. According to BitcoinTreasuries, MicroStrategy, a business intelligence company, currently holds 214,400 BTC.
Conclusion: Will a Supercycle Push BTC Above $100,000?
Since the approval of spot ETFs, trading volume has been gaining momentum, especially during trading hours in the United States.
This emerging trend is understandable because the dominant issuers are from the country.
While prices play a crucial role in the rate at which institutions seek exposure to spot Bitcoin ETFsendorsement from the big guys is important.
If bulls manage to break above $72,000, even breaking above $73,800, institutional interest in the coin will likely soar higher, triggering a supercycle that will push BTC above $100,000.
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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You can lose all your capital.