* . *
  • About
  • Advertise
  • Privacy & Policy
  • Contact
Saturday, September 27, 2025
Earth-News
  • Home
  • Business
  • Entertainment
    Cardi B Adds More Dates to Little Miss Drama Tour: ‘Y’all Making Me Work’ – Yahoo

    Cardi B Extends Little Miss Drama Tour: “Y’all Making Me Work

    ‘Today’: Sheinelle Jones Thanks Katie Couric for Support After Husband’s Death – CBS 19 News

    Sheinelle Jones Expresses Heartfelt Thanks to Katie Couric for Support After Husband’s Passing

    Sate your hunger at DBA’s Taste of Downtown – Bakersfield.com

    Indulge Your Cravings at DBA’s Taste of Downtown!

    Caesars Entertainment (CZR): Assessing Valuation After Times Square Casino Setback and Mounting Investor Concerns – simplywall.st

    Caesars Entertainment Faces Times Square Casino Hurdles as Investor Concerns Mount

    Why Hilaria Baldwin Has Found the ‘DWTS’ Process ‘Embarrassing’ At Times – WFXG

    Hilaria Baldwin Opens Up About the Embarrassing Moments on Her ‘DWTS’ Journey

    Harvest Fest 2025 – yadkinripple.com

    Celebrate the Bounty: Harvest Fest 2025 is Coming!

  • General
  • Health
  • News

    Cracking the Code: Why China’s Economic Challenges Aren’t Shaking Markets, Unlike America’s” – Bloomberg

    Trump’s Narrow Window to Spread the Truth About Harris

    Trump’s Narrow Window to Spread the Truth About Harris

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Trending Tags

    • Trump Inauguration
    • United Stated
    • White House
    • Market Stories
    • Election Results
  • Science
  • Sports
  • Technology
    Aurora police hope to add facial recognition technology to crime-fighting tools – CBS News

    Aurora Police Aim to Boost Crime-Fighting with New Facial Recognition Technology

    Autonomous Solutions shows off cutting-edge technology for the public – Cache Valley Daily

    Autonomous Solutions Unveils Cutting-Edge Technology for the Public

    Amazon to Pay $2.5 Billion in Prime Membership Settlement – The New York Times

    Amazon to Pay $2.5 Billion in Prime Membership Settlement – The New York Times

    What are we really gaining from technology? – Fast Company

    What Are We Really Gaining from Technology?

    TOMI Environmental Solutions, Inc. Expands SteraMist iHP Technology Services in Healthcare Sector with New Provider Partnership – Quiver Quantitative

    TOMI Environmental Solutions Accelerates SteraMist iHP Technology Expansion in Healthcare with New Provider Partnership

    Indiana County Technology Center’s Joint Operating Committee looks to the future as program plans began to take shape – Indiana Gazette Online

    Indiana County Technology Center’s Joint Operating Committee Charts an Exciting Path Forward as New Program Plans Take Shape

    Trending Tags

    • Nintendo Switch
    • CES 2017
    • Playstation 4 Pro
    • Mark Zuckerberg
No Result
View All Result
  • Home
  • Business
  • Entertainment
    Cardi B Adds More Dates to Little Miss Drama Tour: ‘Y’all Making Me Work’ – Yahoo

    Cardi B Extends Little Miss Drama Tour: “Y’all Making Me Work

    ‘Today’: Sheinelle Jones Thanks Katie Couric for Support After Husband’s Death – CBS 19 News

    Sheinelle Jones Expresses Heartfelt Thanks to Katie Couric for Support After Husband’s Passing

    Sate your hunger at DBA’s Taste of Downtown – Bakersfield.com

    Indulge Your Cravings at DBA’s Taste of Downtown!

    Caesars Entertainment (CZR): Assessing Valuation After Times Square Casino Setback and Mounting Investor Concerns – simplywall.st

    Caesars Entertainment Faces Times Square Casino Hurdles as Investor Concerns Mount

    Why Hilaria Baldwin Has Found the ‘DWTS’ Process ‘Embarrassing’ At Times – WFXG

    Hilaria Baldwin Opens Up About the Embarrassing Moments on Her ‘DWTS’ Journey

    Harvest Fest 2025 – yadkinripple.com

    Celebrate the Bounty: Harvest Fest 2025 is Coming!

  • General
  • Health
  • News

    Cracking the Code: Why China’s Economic Challenges Aren’t Shaking Markets, Unlike America’s” – Bloomberg

    Trump’s Narrow Window to Spread the Truth About Harris

    Trump’s Narrow Window to Spread the Truth About Harris

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Trending Tags

    • Trump Inauguration
    • United Stated
    • White House
    • Market Stories
    • Election Results
  • Science
  • Sports
  • Technology
    Aurora police hope to add facial recognition technology to crime-fighting tools – CBS News

    Aurora Police Aim to Boost Crime-Fighting with New Facial Recognition Technology

    Autonomous Solutions shows off cutting-edge technology for the public – Cache Valley Daily

    Autonomous Solutions Unveils Cutting-Edge Technology for the Public

    Amazon to Pay $2.5 Billion in Prime Membership Settlement – The New York Times

    Amazon to Pay $2.5 Billion in Prime Membership Settlement – The New York Times

    What are we really gaining from technology? – Fast Company

    What Are We Really Gaining from Technology?

    TOMI Environmental Solutions, Inc. Expands SteraMist iHP Technology Services in Healthcare Sector with New Provider Partnership – Quiver Quantitative

    TOMI Environmental Solutions Accelerates SteraMist iHP Technology Expansion in Healthcare with New Provider Partnership

    Indiana County Technology Center’s Joint Operating Committee looks to the future as program plans began to take shape – Indiana Gazette Online

    Indiana County Technology Center’s Joint Operating Committee Charts an Exciting Path Forward as New Program Plans Take Shape

    Trending Tags

    • Nintendo Switch
    • CES 2017
    • Playstation 4 Pro
    • Mark Zuckerberg
No Result
View All Result
Earth-News
No Result
View All Result
Home Business

3 Theories Explain the Bitcoin Supply Shock Everyone Is Talking About

February 15, 2024
in Business
3 Theories Explain the Bitcoin Supply Shock Everyone Is Talking About
Share on FacebookShare on Twitter

A recent development has captured the interest of both cryptocurrency investors and analysts. The remarkable surge in demand for spot Bitcoin ETFs (exchange-traded funds) within the United States, coupled with the anticipated reduction in the rate of new BTC entering circulation following the forthcoming halving event, is poised to trigger a substantial supply shock that could fundamentally transform the cryptocurrency market.

As speculation heats up, experts weigh in with compelling theories that offer insight into the future of Bitcoin’s price and its implications for the global economy.

Theory 1: Bitcoin ETF Inflows Driving Demand

Marc van der Chijs, a Dutch entrepreneur and global investor with a keen eye on the cryptocurrency market, offered an insightful analysis of Bitcoin in light of recent developments in ETFs and the anticipated effects of the Bitcoin halving event. His observations provide a granular look into the market demand, supply constraints, and the potential price trajectory of Bitcoin.

Van der Chijs highlighted the significant impact of Bitcoin ETF inflows on the cryptocurrency’s price. He noted a direct correlation between these inflows and daily price increases, attributing a 2% rise in Bitcoin’s price to ETF-related demand. This is particularly noteworthy during the pre-market settlement periods in the United States, where announced inflows tend to push the price higher preemptively.

Bitcoin Price PerformanceBitcoin Price Performance. Source: TradingView

One of the intriguing aspects of van der Chijs’s analysis is the identification of a “market inefficiency.” This inefficiency arises from the predictable nature of price increases following the announcement of ETF inflows. Van der Chijs acknowledged the potential for profit in trading this pattern, underscoring the impact of ETFs on Bitcoin.

Van der Chijs further delved into the supply-demand imbalance exacerbated by ETF inflows. He pointed out that the demand from ETFs significantly outstrips the supply of newly created Bitcoin. Therefore, it creates a situation where prices are forced upwards as sellers hold out for higher prices.

This imbalance is expected to intensify with the upcoming halving of Bitcoin mining rewards. It will reduce the daily supply of new Bitcoin by half, further amplifying the supply shock.

“I think we are in uncharted territory here, but I believe an average increase of $1,000 per trading day over the next weeks is very likely… This means that unless there is a black swan event, we will see a new all-time high before the halving, and we could possibly hit $100,000 in the next 2 to 3 months already,” van der Chijs explained.

Theory 2: Underestimated Global Wealth Flow

Andrew Kang, co-founder of Mechanism Capital, offered a broader perspective on Bitcoin’s potential growth. He highlighted the underappreciated scale of global wealth and its flow into cryptocurrencies. Kang’s analysis estimates long-term Bitcoin demand driven by the massive aggregate income and wealth worldwide.

Kang used the average US household income as a starting point to extrapolate the global aggregate income. He suggested a staggering $52 trillion in potential investment power worldwide. This figure underscores the vast reservoir of capital that could flow into cryptocurrencies, far beyond what many investors might currently perceive.

Even with a conservative estimate of a 1% annual allocation of global income to Bitcoin, this translates to approximately $52 billion in buying power for BTC annually, or $150 million daily. This estimate does not account for the higher allocations that enthusiasts and institutional investors are likely to commit.

Read more: Bitcoin Price Prediction 2024/2025/2030

Percentage Distribution of Household IncomePercentage Distribution of Household Income. Source: Statista

Kang also touched on the transformative effect of Bitcoin ETFs on the market. Before the approval of these ETFs, there was already a consistent demand for Bitcoin, which contributed to its rise as a trillion-dollar asset. The introduction of ETFs is expected to increase this demand further. Especially as daily inflows have exceeded initial estimates, hinting at a potential for even greater daily investment sums.

“I still believe this ETF launch is not comparable to previous events like CME futures, Coinbase IPO, etc. And we don’t spend any time below $40,000. [We will see] $50,000 to $60,000 in February, and an [all-time high] by March,” Kang said.

Theory 3: The Long-Term Institutional Inflow

Ric Edelman, the founder of the Digital Assets Council of Financial Professionals, brought a forward-looking perspective on the influx of institutional and individual advisor investments into Bitcoin, particularly through ETFs. His argument is built around anticipating a significant shift in financial advising, focusing on the role of digital assets.

Edelman highlighted that independent financial advisors, who collectively manage about $8 trillion in assets, are increasingly interested in allocating a portion of their portfolios to Bitcoin ETFs. This shift indicates a broader acceptance and recognition of digital assets’ potential to diversify investment portfolios and enhance returns.

Citing industry surveys by the Digital Assets Council of Financial Professionals and Bitwise, Edelman noted that three-quarters of advisors are willing to allocate to Bitcoin ETFs. This consensus among advisors reflects a growing confidence in digital assets’ stability and future growth despite their inherent volatility and the nascent regulatory framework governing them.

By doing simple arithmetic based on the surveys, Edelman forecasted more than $150 billion in total inflows into digital assets by the end of 2025. This figure is derived from an average allocation of 2.5% of assets under management by 77% of independent advisors.

Such a substantial influx of capital would validate the cryptocurrency market as a mainstay in investment portfolios and potentially drive up the price and liquidity of Bitcoin significantly.

“I’m anticipating that by the time we get to the end of 2025, we’re talking 2 years, we’re going to see total inflows of more than $150 billion. We’re only at $5 billion right now,” Edelman said.

Collectively, these three theories underscore a significant trend. The Bitcoin supply shock is a reflection of deeper economic forces at play.

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.

>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : BeingCrypto – https://beincrypto.com/theories-explain-bitcoin-supply-shock/

Tags: businessExplainTheories
Previous Post

Coinbase (COIN) Stock Rises 10% as Investors Turn Bullish on Earning Power

Next Post

Is Ethereum ETF BlackRock’s Next Win? SEC Chair Gary Gensler Remains Skeptical

New Delhi 2025: Preview, stars and how to watch the World Championships – Paralympic.org

New Delhi 2025 World Championships: Top Athletes to Watch and How You Can Catch the Action

September 27, 2025
Stock market exodus to Wall Street hits 20-year high – EL PAÍS English

Stock market exodus to Wall Street hits 20-year high – EL PAÍS English

September 27, 2025
October Prime Day TV Deals: Elevate Your Entertainment Space With These Early Savings – CNET

October Prime Day TV Deals: Upgrade Your Entertainment Space with These Early Savings

September 27, 2025
Georgia’s Medicaid work requirement program spent twice as much on administrative costs as on health care, GAO says – North Carolina Health News

Georgia’s Medicaid Work Requirement Program Spent Twice as Much on Administration as on Patient Care, GAO Finds

September 27, 2025
TGIF: Ian Donnis’ Rhode Island politics roundup for Sept. 26, 2025 – The Public’s Radio

TGIF: Ian Donnis’ Rhode Island politics roundup for Sept. 26, 2025 – The Public’s Radio

September 27, 2025
City Parks Initiative Launches Ecological Tracker for Bond Projects – Citizen Portal AI

Revolutionary Ecological Tracker Unveiled to Transform Monitoring of City Parks Bond Projects

September 27, 2025
Award-winning science writer leads student discussions at Eckerd – theonlinecurrent.com

Award-Winning Science Writer Inspires Student Discussions at Eckerd College

September 27, 2025
Human Head Transplants: Where the Science Stands, and Why the Ethics Are So Complicated – Discover Magazine

Human Head Transplants: The Science Behind the Procedure and the Complex Ethical Debate

September 27, 2025
New lifestyle brand TENŌRE set to open flagship store in Waikīkī – KITV

New lifestyle brand TENŌRE set to open flagship store in Waikīkī – KITV

September 27, 2025
Aurora police hope to add facial recognition technology to crime-fighting tools – CBS News

Aurora Police Aim to Boost Crime-Fighting with New Facial Recognition Technology

September 27, 2025

Categories

Archives

September 2025
M T W T F S S
1234567
891011121314
15161718192021
22232425262728
2930  
« Aug    
Earth-News.info

The Earth News is an independent English-language daily published Website from all around the World News

Browse by Category

  • Business (20,132)
  • Ecology (839)
  • Economy (860)
  • Entertainment (21,734)
  • General (17,270)
  • Health (9,903)
  • Lifestyle (872)
  • News (22,149)
  • People (861)
  • Politics (870)
  • Science (16,069)
  • Sports (21,359)
  • Technology (15,842)
  • World (842)

Recent News

New Delhi 2025: Preview, stars and how to watch the World Championships – Paralympic.org

New Delhi 2025 World Championships: Top Athletes to Watch and How You Can Catch the Action

September 27, 2025
Stock market exodus to Wall Street hits 20-year high – EL PAÍS English

Stock market exodus to Wall Street hits 20-year high – EL PAÍS English

September 27, 2025
  • About
  • Advertise
  • Privacy & Policy
  • Contact

© 2023 earth-news.info

No Result
View All Result

© 2023 earth-news.info

No Result
View All Result

© 2023 earth-news.info

Go to mobile version