Is the drop in interest in Bitcoin ETF spot due to memecoin fever?
Bitcoin ETFs absorb supply at the rate that newly mined coins are acquired or absorbed by these funds.
This metric is important because spot ETFs absorbing more and more supply could lead to upward price pressure on BTC.
Conversely, falling demand can signal a decline in potential value.
However, in the current market, retail investors who usually accumulate these coins have turned their attention to memecoins.
Over the past few weeks, the value of several memecoins on Solana has increased by triple digits, leading to a significant increase in the memecoin market capitalization
According to Oininen_t,
âWhile retail investors show growing interest in Bitcoin, their focus is likely to be on new tokens based on Solana and âmemecoinsâ.â
The analyst concluded that negative supply absorption is a temporary weakness in the spot ETF market.
âThe bigger picture still looks promising. In a multi-year scenario, I see Bitcoin trying to achieve market cap parity with gold, which would mean a 1000% increase from the current spot price.â
Since its launch, spot Bitcoin ETF volumes have increased significantly. At $182 billion at the time of writing, the asset's cumulative daily volume has increased by more than 3500%.
Source: The Block
