CryptoQuant: Bitcoin Bears Face Uphill Battle Amid ETF Inflows

If the current pace of capital inflows into spot Bitcoin ETFs continues, the market will face a crisis of available coins for purchase within six months, according to CryptoQuant CEO Ki Young Ju.

Bears can’t win this game until spot #Bitcoin ETF inflow stops.

Last week, spot ETFs saw netflows of +30K BTC. Known entities like exchanges and miners hold around 3M BTC, including 1.5M BTC by US entities.

At this rate, we’ll see a sell-side liquidity crisis within 6 months. pic.twitter.com/qwAbZJwSOl

— Ki Young Ju (@ki_young_ju) March 12, 2024

According to the specialist’s calculations, entities purchased 30,000 BTC in the previous week.

A significant volume of supply (around 3 million BTC) is held by other players—CEX and miners. Half of this amount is held by US organizations.

“Once a sell-side liquidity crisis occurs, the next cyclical peak of Bitcoin will exceed our expectations due to limited coin availability and a thin order book,” the expert predicted.

According to the CEO of CryptoQuant, this will happen when accumulating addresses amass a total of 3 million BTC.

Back in January, just two months after the launch of the first spot Bitcoin ETFs in the US, the AUM of nine “new” structures (excluding the “converted” GBTC from Grayscale) reached about 420,000 BTC. This is approximately 2% of the total issuance of the first cryptocurrency.

The highest turnover of instruments was recorded on March 5—$9.93 billion. At that time, the price of digital gold reached a new high above $69,000 for the first time since November 2021. 

Earlier, weekly inflows into cryptocurrency investment products reached a record $2.69 billion.