MicroStrategy’s CEO, Michael Saylor, recently discussed the significance of Bitcoin’s rise against fiat currencies, highlighting its ability to protect investors from devaluation and serve as a store of value. As a result, Bitcoin has reached the $67,000 price level once again, following a slight recovery.
Saylor, a prominent advocate for Bitcoin, expressed his views on a wide platform, emphasizing how Bitcoin safeguards investors’ traditional currencies from devaluation. This message resonates not only with Bitcoin maximalists like Saylor and Max Keiser but also with numerous financial institutions. The approval of spot Bitcoin exchange-traded funds (ETFs) by the SEC has further fueled the demand for Bitcoin this year.
In mid-January, the regulatory body greenlit the trading of 11 ETFs, ten of which began aggressively accumulating Bitcoin at a rate of approximately 10,000 BTC daily. This amount is twelve times greater than the daily production of 900 BTC by miners. The introduction of ETFs has significantly increased the demand for Bitcoin, attracting both individual and institutional investors who follow the same path of accumulation.
The Bitcoin community also witnessed the fourth halving event in the second half of April, leading to a reduction in the production of new Bitcoin. This event, as highlighted by well-known Bitcoin investors, resulted in a supply shock.
On May 17, analytics from the @spotonchain account on X revealed that the aforementioned Bitcoin ETFs recorded a total inflow of over $222 million. What’s more, this inflow remained positive throughout the current trading week, contributing to a 10% recovery in Bitcoin prices over the last seven days.
Grayscale, a prominent digital assets management firm, experienced consecutive positive inflows over the past three days. Notably, Fidelity made the largest single-day inflow on Friday, surpassing BlackRock’s fund with a $38.1 million Bitcoin inflow and contributing $99.4 million to Bitcoin.
It is important to note that the information presented in this article does not constitute investment advice. Investors should exercise caution due to the high volatility and associated risks of cryptocurrencies, conducting their own research before making any decisions.
