Once again we have found ourselves in another sideways zone in Bitcoin price action with values oscillating between $51,000 at the bottom and $52,000 at the top, quite despite the fact that in recent days spot Bitcoin ETFs recorded very positive net inflows, but for some reason did not impact to the upside.
In this regard it is important to mention that, "some data points to the fact that inflows into bitcoin ETFs are not being driven by new entrants, which is much less bullish than previously thought."
According to information disclosed by Marcel Pechman Bitcoin is showing strength in the absence of retail investors, so, "There are several possible explanations for bitcoin's limited performance, although it is impossible to determine how each market participant values its position or what the logic behind the selling pressure is."
In Pechman's words, "Currently, the Bitcoin network issues 900 BTC per day as incentives to miners, which equates to about USD 328 million per week. By comparison, the adjusted daily volume of bitcoin exceeds USD 10 billion, so ultimately, subsidy minted coins are not representative in terms of pricing, given that more than 93% of the maximum supply of 21 million is already in circulation."
On the other hand, "there is no way to paint a bearish picture from the spot Bitcoin ETF data, and the longer the inflow continues, the greater the likelihood of a supply shock that takes Bitcoin above USD 60,000"
SOURCES CONSULTED
Cointelegraph. Bitcoin price keeps rising, but where are the new investors?. Link
OBSERVATION:
The cover image does not belong to the author: @lupafilotaxia, the image was taken from: Cointelegraph
