ETF funds have pushed bitcoin above $50,000, with experts predicting a jump to $100,000 amid new market dynamics.
The recent emergence of #bitcoin #ETF funds has driven up the price of #BTC, with issuers buying ten times more bitcoin than they mine in a day, resulting in a daily price increase of around $1,000 (2%) The recent surge in the price of BTC above the $50,000 mark and above $52,000 has been largely due to the emergence of new spot bitcoin ETF funds. Crypto industry insider and Hut 8 founder Mark van der Chase emphasizes that the reason for this rise is the massive buying by ETF issuers. He notes that most of the price spikes occur during the ETF settlement period, shortly before the U. S. market opens.
ETFs upset the balance of supply and demand. Because daily inflows far exceed the amount of new bitcoins mined, investors get rid of their bitcoin holdings to meet the demand for ETFs, driving up prices. This growth will encourage investment in ETFs for fear of missing out on profits, further increasing the value of bitcoin. Prices are expected to rise in the coming weeks, with Mr. Cheese predicting consistent increases to $1,000 per day. He also points to two key events that could further accelerate price gains: the halving of bitcoin and the sale of new ETF shares.
The April bitcoin halving will reduce daily bitcoin production from 900 BTC to 450 BTC, and prices are likely to soar as ETFs compete for fewer bitcoins. In addition, share sales of new ETFs, which are expected to begin in early May, could further boost bitcoin demand and prices. Chizh predicts that bitcoin will hit record highs even before halving and could reach the $100,000 mark in the coming months, barring any major unexpected market disruptions. He optimistically predicts.
Read us at: Compass Investments
