The U.S. Bitcoin spot ETF has achieved tremendous success, with on-chain total holdings surpassing 1.12 million BTC (approximately 1.128 million coins), accounting for 5.7% of the current Bitcoin supply, surpassing Satoshi Nakamoto. With Trump about to take office, the expected loose regulatory environment has greatly increased institutional interest in Bitcoin. Edward Chin, co-founder of Parataxis Capital, believes that the imbalance between Bitcoin supply and demand will lead to an increase in BTC prices.
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The ETF holds over 1.12 million BTC, surpassing Satoshi Nakamoto.
According to data from Dune, the on-chain total holdings of the U.S. Bitcoin spot ETF have surpassed 1.128 million BTC, accounting for 5.7% of the current Bitcoin supply, surpassing Satoshi Nakamoto.
As the first miner of the Bitcoin network, Satoshi Nakamoto is widely believed to hold about 1 million to 1.1 million BTC, distributed across over 20,000 wallets, which have not been transferred for decades.
Institutional interest in Bitcoin has surged.
Matt Hougan, Chief Investment Officer of Bitcoin ETF issuer Bitwise, stated in an interview that since the beginning of October, 40% of the meetings he held with registered investment advisors (RIAs) and institutions have resulted in Bitcoin allocations, up from 10% previously.
Matthew Sigel, Head of Digital Asset Research at Bitcoin ETF issuer VanEck, also stated that his phone has been ringing non-stop, and RIAs seem particularly motivated to move away from the previous 0% allocation of crypto assets.
The imbalance between Bitcoin supply and demand will lead to an increase in BTC prices.
As demand grows and the wallets of market institutional whales grow larger, there are not enough sellers to restrain prices, especially from OG Bitcoin holders who are unwilling to sell. Additionally, a certain proportion of Bitcoin will never change hands due to forgotten passwords or lost hard drives containing Bitcoin wallet keys. Especially Satoshi Nakamoto, who is believed to have 1.1 million Bitcoins in his wallet, with widespread speculation that he has passed away, causing these tokens to be permanently frozen.
Additionally, the total supply of Bitcoin is fixed (21 million coins), and its supply is gradually released through the mining process. Approximately every four years, the mining reward is halved until all Bitcoins are mined. Due to the decreasing supply of new Bitcoins, only about 164,250 new Bitcoins are added each year, which is only half the amount held by MicroStrategy.
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Edward Chin, co-founder of Parataxis Capital, believes that with a large number of buyers for the ETF, along with other sovereign wealth funds, non-U.S. retail investors, and other non-U.S. institutional investors, there will not be enough Bitcoin to meet demand unless the Bitcoin price rises significantly to force existing holders to sell.
The risks brought by the new concentrated ownership group of Bitcoin are twofold; many previously astonishing price predictions, which once sounded like daydreams from crypto enthusiasts, now seem less far-fetched.
Chin expects Bitcoin to rise above $500,000, depending on the specific actions of the U.S. government.
Given that BTC will become part of the global monetary base like gold today, in today's dollars, the BTC price could approach $1 million.
This article 'Bitcoin Spot ETF Holdings Exceed Satoshi Nakamoto! Supply and Demand Imbalance Will Cause BTC Prices to Rise' first appeared in Chain News ABMedia.
