Bitcoin Supply Concerns Raised by Influencer
Jeremie Davinci, an early Bitcoin adopter and YouTuber, recently sparked interest in the crypto community with a tweet. He shared a chart indicating a significant drop in Bitcoin held by various cryptocurrency exchanges, suggesting that acquiring BTC has become quite challenging at the moment.
“The Supply Shock is Brewing”
In his message, Davinci stated, “There is no Bitcoin left in the exchange.” He believes this points to impending “supply shocks,” driven by the fact that crypto miners are holding onto their BTC instead of selling it. Interestingly, the chart indicates that while the supply has decreased significantly, Bitcoin is still not entirely absent from trading platforms, with around 2.4 million BTC left in exchange. This detail was noted by one of his followers in the comments.
First Bitcoin Supply Shock Anticipated in January 2024
Jan3 CEO Samson Mow was the first to forecast potential Bitcoin demand and supply shocks, projecting these changes for January 2024. This prediction came after the SEC approved exchange-traded funds (ETFs) that would operate under Gary Gensler’s regulations for spot Bitcoin trading. Once launched, these ETFs, spearheaded by BlackRock’s IBIT, began purchasing BTC at a pace exceeding daily production by miners.
Mow’s analysis suggested that as ETFs rapidly accumulate Bitcoin and with other financial institutions joining in, we could soon witness a) a demand shock for Bitcoin, b) a supply shock, particularly since half of the Bitcoin halving occurred on April 20th, and c) these two shocks could drive the price to around $1,000 per BTC.
BlackRock ETF Reaches 20-Day Investment Streak
BlackRock’s ETF has now recorded inflows for an impressive 20 consecutive days, as noted by ETF Store president Nate Geraci earlier today. He highlighted that during this period, ETFs have gathered an astonishing $5 billion in investments, effectively countering the recent narrative of “No Bitcoin Request” presented by some analysts, including Bitcoin skeptic Peter Schiff.
