Institutional demand for Bitcoin (BTC) shows no signs of weakening, even amid price volatility. Spot bitcoin ETF recorded an inflow of 4349,7 BTC worth $423,6 million - almost double the 2250 BTC mined during the same period.
This imbalance highlights the growing dominance of institutional investors in shaping market dynamics and raises questions about Bitcoin’s ability to meet growing demand. Last week’s performance suggests that ETF accumulate more BTC than miners can mine.
Divergence between the influx ETF and miners' balances reflects the tightening of liquidity in the bitcoin markets. Institutions appear to be committed to bitcoin as a long-term macroeconomic hedge, having seen its benefits beyond speculative trading.
Spot only in December bitcoin ETF attracted $5,5 billion in capital, which, incidentally, further widened the gap between supply and demand. This growing discrepancy is likely to put upward pressure on the price of BTC.
At the same time, the concentration of assets among institutional players can exacerbate sell-offs during market downturns. In such circumstances, retail investors should be more attentive to the actions of institutions.
