Breaking Crypto News – How Can Investors Prepare for Bitcoin Demand Shock?
Breaking Crypto News – As of right now, Bitcoin prices are stable at roughly $71,000, indicating a strong demand shock. This rise is driven by institutional investor demand, particularly through spot ETFs. Spot Bitcoin ETFs have seen net inflows never seen before. They have had positive inflows every day for the last 19 days, which is the longest run since they were founded.
Bitcoin ETFs have seen inflows totaling more than $1.7 billion in only one week. Remarkably, June 4 was the largest daily inflow of the week, with $886 million coming into spot Bitcoin ETFs.
That’s the highest weekly inflow since launch (+$1.7 billion) – and we still have one day left,
crypto analyst Miles Deutscher
Disparity between Bitcoin Miners’ Production and ETF Purchases
Furthermore, the disparity between the output of Bitcoin miners and ETF purchases emphasizes the shock to the market. Crypto investor Adam Back pointed out that on June 4, ETFs purchased an astounding 12,508 BTC, despite the fact that Bitcoin miners created just 450 BTC.
In spite of these optimistic developments, the funding rate for Bitcoin is still neutral. Neutral funding rates indicate a stable market environment with less likelihood of abrupt downturns, even in the face of high Bitcoin prices.
Last time we were here (in March/April) – it was a sea of orange/red (high funding rate),
Deutscher
FAQ
What is Demand Shock?
A shift in the demand for a good or service that is abrupt and severe is called a demand shock. A lack of supply will result in a higher price, whereas an abundance of supply will result in a decrease in price in the event of a positive demand shock.
What is Buying Pressure?
The demand for a specific asset is referred to as buying pressure, while the supply is referred to as selling pressure. The asset’s price and the direction of the market in the future are determined by how these two factors interact.
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