Investors in bitcoin are struggling with a lack of demand, which has occasionally driven the coin into bear market territory.
The cryptocurrency will break new marks. The demand for bitcoin ETFs has just picked up again, which is encouraging for the price in the longer run.
Demand for the actual bitcoin that powers these funds is static and urgently needs to pick up steam if bitcoin is to break all previous records.
It has already dropped 18% from its peak, which it reached in March.
“Bitcoin’s overall market cap is very large now, at $1.2 trillion, and there is considerable liquidity,”
“There are a lot of sellers in addition to a lot of buyers.” “For the price of bitcoin to move in an outsized direction, there must be a significant amount of buying demand on any given week.”
“While the volume of ETFs is more in the hundreds of millions, the total volume of Bitcoin can be in the tens of billions on any given day.”
Bitcoin ETFs net acquired 7,000 BTC at the end of September after net selling 5,000 BTC on September 2, which was the largest daily purchase since July 21.
Source (CNBC)
