Strong start of the week for ETFs: net inflow of +7k #BTC
-Cumulative holdings crossed 800k BTC.
-BlackRock’s now holds over 200k BTC.
-Grayscale dropped below 400k BTC.
-Large inflow to Van Eck due to year-long zero fees. pic.twitter.com/c1GtRit0qG— Root 🥕 (@therationalroot) March 12, 2024
This also leads to increasing demand from other market participants such as MicroStrategy, which recently purchased an additional 12,000 bitcoins. On-chain analyzes also show that long-term holders (hodlers) are not yet going to sell en masse at this price. There is also a sentiment in part of the community: we are not going to sell to Wall Street who now wants our coins.
The market is also preparing for the bitcoin halving, where the reward for bitcoin miners will be cut in half. That means fewer bitcoins are mined per day: 450 instead of 900 now. There is some sales going on in that area, according to analysis by CryptoQuant. Mining companies do start selling at this market price. They need to build up financial reserves for after the halving in order to continue investing in new equipment. This is necessary to maintain the rat race among mining companies now that the computer power of the network continues to increase.
Miners started selling $BTC.
Bull market would continue unless ETF inflow slows down, imo. pic.twitter.com/jdxmvnj9jV
— Ki Young Ju (@ki_young_ju) March 13, 2024
Another factor is the policy rate of the US central bank. The Fed has allowed these to rise to quell inflation. Now the brakes are being applied and according to this analyst, a possible interest rate cut has not yet been priced in by the market. Lower interest rates are generally beneficial for risky (re)investments such as tech shares, precious metals and cryptocurrencies.
Fun fact: the market was never priced for rate cuts.
It still isn’t. https://t.co/Li0JWrNASd
— Caleb Franzen (@CalebFranzen) March 13, 2024
Source: https://bitcoinmagazine.nl/nieuws/bitcoin-noteert-opnieuw-all-time-high-73-679
