Bitcoin Demand Surpasses Supply: Miners Produce Five Times Less Than ETF Purchases
Date: 2024-03-03 Author: Dima Zakharov Categories: IN WORLD
Demand for Bitcoin has soared above its supply as revealed by recent data. Founder of the business incubator Advisor Circle, Matt Hugan, disclosed that the demand for Bitcoins far exceeds what miners are able to produce.
In a summary report covering the week from February 24 to March 1, Hugan highlighted a stark contrast in the numbers. ETF issuers bought 30,029 Bitcoins, while miners managed to mine only 6,160 coins during the same period.
This data suggests that ETF creators withdrew almost five times more Bitcoins from circulation than miners were able to produce. CoinGape analysts estimated that considering all factors, the demand for BTC surpasses the supply by 20.5%. However, they did not provide detailed clarification on their methodology.
This evident disparity between demand and supply is expected to further drive the Bitcoin price upwards. Moreover, following the upcoming halving event in April, miners will produce only half as many coins, thereby reducing the supply even more. If demand remains constant, the upward pressure on the cryptocurrency's price is likely to intensify.
Nevertheless, analysts from J.P. Morgan predict a drop in Bitcoin's value to around $42,000 post-halving. They attribute this forecast to the anticipated waning of euphoria after the halving event, likely replaced by a period of downturn.
