According to PANews, researchers at blockchain data company Glassnode pointed out in a report that the influx of large demand will challenge the relatively limited supply of liquid Bitcoin, which may expand volatility. The study pointed out that there is a large amount of suppressed demand for spot Bitcoin ETF products, and it is estimated that stock, bond and gold investors only need to allocate a small part of their assets, and up to $70.5 billion in funds will flow into the market; even more conservative forecasts will have tens of billions of dollars entering the market in the first few years.
Glassnode's research report explains that in order to understand the market dynamics that may occur after the launch of the ETF, it is now necessary to turn attention to the available supply of Bitcoin. The analysis highlights how long-term accumulation is tightening the circulating supply of Bitcoin. Currently, more than 76% of Bitcoin is held for the long term, concentrated in the hands of holders who are less responsive to price fluctuations, and the supply of short-term and active traders has recently hit a multi-year low.
