* . *
  • About
  • Advertise
  • Privacy & Policy
  • Contact
Saturday, September 6, 2025
Earth-News
  • Home
  • Business
  • Entertainment
    Pendulum Announce Homecoming 2026 Australian Tour – yahoo.com

    Pendulum Announces Thrilling Homecoming Tour Across Australia in 2026

    ITV Studios Launches New Entertainment Label – Global Bulletin – IMDb

    ITV Studios Unveils Exciting New Entertainment Label

    TS Entertainment bringing Malibu Jack’s to former Owensboro mall – Lane Report

    TS Entertainment Launches Malibu Jack’s at Former Owensboro Mall Location

    Jenny Han Dropped a Major ‘The Summer I Turned Pretty’ Easter Egg Revealing [SPOILER] – yahoo.com

    Jenny Han Just Unveiled a Huge ‘The Summer I Turned Pretty’ Easter Egg That Changes Everything [SPOILER]

    Liam Payne’s Cousin Ross Harris Honors Late Singer With Emotional Song ‘Bones’ – yahoo.com

    Liam Payne’s Cousin Ross Harris Honors Late Singer with Emotional New Song ‘Bones

    Country music star apologizes after drunken show ends with cops taking him down: ‘I’m not OK’ – PennLive.com

    Country Music Star Apologizes After Drunken Show Ends in Police Intervention: ‘I’m Not OK

  • 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
    Coherent Joins LLNL’s STARFIRE Diode Technology Working Group to Advance Inertial Fusion Energy – GlobeNewswire

    Coherent Partners with LLNL’s STARFIRE Team to Drive Breakthroughs in Inertial Fusion Energy

    Gene Associated With Deadly Heart Disease in Golden Retrievers Identified – Technology Networks

    Breakthrough Discovery Uncovers Gene Behind Deadly Heart Disease in Golden Retrievers

    Monkey Island LNG Picks ConocoPhillips’ Liquefaction Technology – Hart Energy

    Monkey Island LNG Selects ConocoPhillips’ Advanced Liquefaction Technology for Next-Gen Energy Solutions

    Credo Technology Group Holding Ltd. (CRDO) Surpasses Q1 Earnings and Revenue Estimates – Yahoo Finance

    Credo Technology Group Surpasses Q1 Earnings and Revenue Expectations

    The Economist is hiring a science and technology correspondent – The Economist

    Exciting Opportunity: Become Our Next Science and Technology Correspondent!

    Blockchain lender Figure Technology seeks to raise up to $526M in IPO (FIGR:Pending) – Seeking Alpha

    Blockchain Lender Figure Technology Sets Sights on $526M in Thrilling IPO Launch

    Trending Tags

    • Nintendo Switch
    • CES 2017
    • Playstation 4 Pro
    • Mark Zuckerberg
No Result
View All Result
  • Home
  • Business
  • Entertainment
    Pendulum Announce Homecoming 2026 Australian Tour – yahoo.com

    Pendulum Announces Thrilling Homecoming Tour Across Australia in 2026

    ITV Studios Launches New Entertainment Label – Global Bulletin – IMDb

    ITV Studios Unveils Exciting New Entertainment Label

    TS Entertainment bringing Malibu Jack’s to former Owensboro mall – Lane Report

    TS Entertainment Launches Malibu Jack’s at Former Owensboro Mall Location

    Jenny Han Dropped a Major ‘The Summer I Turned Pretty’ Easter Egg Revealing [SPOILER] – yahoo.com

    Jenny Han Just Unveiled a Huge ‘The Summer I Turned Pretty’ Easter Egg That Changes Everything [SPOILER]

    Liam Payne’s Cousin Ross Harris Honors Late Singer With Emotional Song ‘Bones’ – yahoo.com

    Liam Payne’s Cousin Ross Harris Honors Late Singer with Emotional New Song ‘Bones

    Country music star apologizes after drunken show ends with cops taking him down: ‘I’m not OK’ – PennLive.com

    Country Music Star Apologizes After Drunken Show Ends in Police Intervention: ‘I’m Not OK

  • 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
    Coherent Joins LLNL’s STARFIRE Diode Technology Working Group to Advance Inertial Fusion Energy – GlobeNewswire

    Coherent Partners with LLNL’s STARFIRE Team to Drive Breakthroughs in Inertial Fusion Energy

    Gene Associated With Deadly Heart Disease in Golden Retrievers Identified – Technology Networks

    Breakthrough Discovery Uncovers Gene Behind Deadly Heart Disease in Golden Retrievers

    Monkey Island LNG Picks ConocoPhillips’ Liquefaction Technology – Hart Energy

    Monkey Island LNG Selects ConocoPhillips’ Advanced Liquefaction Technology for Next-Gen Energy Solutions

    Credo Technology Group Holding Ltd. (CRDO) Surpasses Q1 Earnings and Revenue Estimates – Yahoo Finance

    Credo Technology Group Surpasses Q1 Earnings and Revenue Expectations

    The Economist is hiring a science and technology correspondent – The Economist

    Exciting Opportunity: Become Our Next Science and Technology Correspondent!

    Blockchain lender Figure Technology seeks to raise up to $526M in IPO (FIGR:Pending) – Seeking Alpha

    Blockchain Lender Figure Technology Sets Sights on $526M in Thrilling IPO Launch

    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

Is Bitcoin’s Price in 2024 Being Suppressed? It’s Complicated

July 2, 2024
in Business
Is Bitcoin’s Price in 2024 Being Suppressed? It’s Complicated
Share on FacebookShare on Twitter

ETFs and institutions are snapping up Bitcoin, but who’s on the other end driving the price down?

It’s more complicated than you’d think.

The 2024 focus has been on ETF inflows as if they were the entire story, but it neglects the broader market dynamics picture. So, who’s offloading their Bitcoin?

On one hand, the early adopters, or OGs, are cashing in. These seasoned holders have more BTC than all the ETFs combined—ten times more.

This isn’t unusual; they tend to sell during bull markets, a pattern dating back to Bitcoin’s inception.

Why?

Bills come up. Life-changing profit is worth realizing sooner rather than later for many.

Let’s keep in mind BTC whales are less likely to be sage oracles thinking in terms of centuries rather than early techies that got super lucky with their timing, either mining or through bold purchases.

Beyond that, we’re witnessing a new era in Bitcoin trading.

The introduction of paper BTC (through CME and Cboe in December 2017) has transformed the market landscape, and its interplay with the 2024 ETF launch is worth exploring.

Futures markets allow you to buy Bitcoin on paper: you can get Bitcoin exposure from sellers with no actual BTC, only USD.

This diversion of demand from real to paper BTC is significant.

In the past, Bitcoin price rallies were slightly impacted by limited sales from OGs and newly minted coins from miners.

Today, paper BTC plays a pivotal role.

Despite spot holders holding firm, the bear market of 2022 was largely influenced by an influx of paper BTC (The first Bitcoin Futures ETF (ProShares Bitcoin Strategy ETF) was approved in October 2021)

Synthesizing this information is more of an art than a science, and everyone is working with educated estimates, but there’s enough information to justify that the bull market’s price rally may be suppressed by paper BTC, as we’ll explore below.

The Market Dynamics of Bitcoin’s Price

 Bitcoin’s derivatives markets are forcing a market dynamics lesson on BTC holders.

Investors who buy into BTC ETFs are not necessarily buying physical Bitcoin. Instead, they might be buying shares of a fund that holds Bitcoin or gains exposure through derivatives.

This can divert demand away from the actual Bitcoin market.

 BTC ETFs often use futures contracts and other derivatives to gain exposure to Bitcoin prices. These financial instruments do not require the holder to buy actual Bitcoin, thereby increasing the supply of “paper BTC.”

In Wolf of Wallstreet terms, it ain’t real– it’s a fugazi, fairy dust. 

This supply increase can meet new investors’ demand without pushing up the price of actual Bitcoin.

With more investors able to gain Bitcoin exposure through ETFs and futures rather than buying physical Bitcoin, the demand pressure on the actual Bitcoin market is reduced.

This can suppress the price of Bitcoin, as the influx of new investment money is channeled into financial products rather than buying the real asset.

If the market perceives that most new demand is being met through paper BTC rather than actual purchases, it can influence trader behavior; sellers might be more willing to sell at lower prices, anticipating that demand is being absorbed by derivatives rather than spot markets.

This price suppression through derivatives and futures isn’t exclusive to BTC; it has played out in several other asset classes.

Price Suppression Theory: Some market analysts believe that the extensive use of futures contracts has suppressed the price of physical assets like gold. The idea is that by creating large amounts of “paper gold” (futures contracts), the actual demand for physical gold is reduced, keeping the prices lower than they might be if all investments were directed toward physical gold.

The gold market is one of the most prominent examples of how derivatives can influence the price of an asset; gold futures contracts allow investors to speculate on the price of gold without actually holding physical gold.

In the real estate market, mortgage-backed securities are a type of derivative that played a significant role in the 2008 financial crisis.

MBS are created by pooling together various mortgage loans and selling the cash flows from these pools to investors.

While MBS are not typically cited as directly suppressing real estate prices, their proliferation led to significant distortions in the housing market. The ease of selling mortgage loans to be packaged into MBS led to lax lending standards, increasing the money available for housing and inflating property prices.

When the market for these securities collapsed, real estate prices sharply declined, demonstrating the powerful indirect effects of financial derivatives on the underlying asset market.

Similar to gold, the oil market is heavily influenced by futures trading. This allows companies and investors to hedge against or speculate on the future oil price, leading to significant price volatility.

At times, the price set in the futures market can suppress spot prices, especially when there is a significant amount of speculative trading that does not correlate directly with the physical supply and demand for oil.

Agricultural commodities like wheat, corn, and soybeans are also traded heavily through futures contracts. These markets were originally created to help farmers hedge against price fluctuations, but they’ve become popular with speculators.

In January 2024, the U.S. Securities and Exchange Commission (SEC) approved the first spot Bitcoin ETFs, marking a significant milestone for the cryptocurrency market.

Unlike futures-based ETFs, spot Bitcoin ETFs hold actual Bitcoin; ETFs allow investors to gain direct exposure to Bitcoin’s price movements without needing to manage digital wallets or deal with self-custody issues.

While ETFs increase overall market participation, the presence of derivatives and synthetic products can lead to complex interactions between spot and futures markets, influencing price movements and volatility.

Final Thoughts: Bitcoin’s Price Signals Maturity

This begs the question– how do long-term self-custodied Bitcoin holders combat price suppression?

Price suppression isn’t necessarily terrible; it’s an indicator that Bitcoin is mature enough to handle the same market manipulative abuse as more mature asset classes, if that’s any consolation.

Still, BTC is for BTC holders, and the technology is vastly more important than the speculative markets formed around it in recent history.

A community of long-term Bitcoin holders can take proactive steps to combat price suppression by promoting self-custody, supporting transparency, and advocating for Bitcoin-backed financial products.

Moreover, as more Bitcoin is moved into cold storage, the available supply in the active market decreases. HODL behavior shifts the balance in favor of long-term organic pricing, making it harder for paper Bitcoin to have as much suppressive effect.

Never Miss Another Opportunity! Get hand selected news & info from our Crypto Experts so you can make educated, informed decisions that directly affect your crypto profits. Subscribe to CoinCentral free newsletter now.

>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : CoinCentral – https://coincentral.com/is-bitcoins-price-in-2024-being-suppressed-its-complicated/?utm_source=rss&utm_medium=rss&utm_campaign=is-bitcoins-price-in-2024-being-suppressed-its-complicated

Tags: Bitcoin’sbusinessPrice
Previous Post

Uphold Exchange Review: Can You Trust Uphold with Your Crypto? (Updated 2024)

Next Post

Lif3.com partners with evmOS to deploy “Lif3 Chain,” first Layer-1 solution with curated DeFi contracts

America is getting the economy we voted for – Noah Smith | Substack

America Is Finally Experiencing the Economy We Created

September 6, 2025
Pendulum Announce Homecoming 2026 Australian Tour – yahoo.com

Pendulum Announces Thrilling Homecoming Tour Across Australia in 2026

September 6, 2025
HHS responds to report about autism and acetaminophen : Shots – Health News – NPR

HHS Addresses New Findings on Autism and Acetaminophen Use

September 6, 2025
September 2, 2025: Trump administration news – CNN

September 2, 2025: Trump administration news – CNN

September 6, 2025
Blending art, culture and native plants at Wakamatsu – Mountain Democrat

Discover the Harmony of Art, Culture, and Native Plants at Wakamatsu

September 6, 2025
The Two-Body Problem for Women in Science – Nautilus | Science Connected

The Two-Body Problem for Women in Science – Nautilus | Science Connected

September 6, 2025
How AI and Automation are Speeding Up Science and Discovery – Berkeley Lab News Center (.gov)

How AI and Automation Are Accelerating Breakthroughs in Scientific Discovery

September 6, 2025

American Trust Investment Services Serves as Exclusive Placement Agent in $9 Million Follow-On Offering for Nova LifeStyle, Inc. – Morningstar

September 6, 2025
Coherent Joins LLNL’s STARFIRE Diode Technology Working Group to Advance Inertial Fusion Energy – GlobeNewswire

Coherent Partners with LLNL’s STARFIRE Team to Drive Breakthroughs in Inertial Fusion Energy

September 6, 2025
EA SPORTS™ and New York City FC Extend Partnership to Power the Future of Football Fandom in NYC – New York City FC

EA SPORTS™ and New York City FC Join Forces to Transform Football Fandom in NYC

September 6, 2025

Categories

Archives

September 2025
MTWTFSS
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 (809)
  • Economy (828)
  • Entertainment (21,705)
  • General (16,883)
  • Health (9,869)
  • Lifestyle (840)
  • News (22,149)
  • People (829)
  • Politics (835)
  • Science (16,038)
  • Sports (21,326)
  • Technology (15,808)
  • World (808)

Recent News

America is getting the economy we voted for – Noah Smith | Substack

America Is Finally Experiencing the Economy We Created

September 6, 2025
Pendulum Announce Homecoming 2026 Australian Tour – yahoo.com

Pendulum Announces Thrilling Homecoming Tour Across Australia in 2026

September 6, 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