Bitcoin (BTC) Price Will Never Drop To This Level: Predicts Cryptoquant Founder

Bitcoin (BTC) Price Will Never Drop To This Level: Predicts Cryptoquant Founder

The post Bitcoin (BTC) Price Will Never Drop To This Level: Predicts Cryptoquant Founder appeared first on Coinpedia Fintech News

Ki Young Ju’s analysis draws a fascinating comparison between Bitcoin’s current trajectory and gold’s historical behavior following the ETFs’ introduction. When the Gold ETF (GLD) debuted on the NYSE in 2004 at around $444, it marked a significant milestone in the accessibility of gold investments for institutional and retail investors.

As gold became more accessible, more institutional investors poured money into the market through the ETF to get into the precious metal.

Gold ETF Impact: Historical Comparison

Ju uses historical gold market trends to support this claim. In 2004, the NYSE introduced the Gold ETF (GLD), which affected gold prices. Since the ETF listing, gold has never returned to $444. Ju credits increasing accessibility and ETF-facilitated institutional inflows for this phenomenon.

Similarly, Ju also argues that introducing spot Bitcoin ETFs could have a comparable effect on Bitcoin’s price dynamics. Despite initial skepticism, the accessibility provided by ETFs could lead to sustained institutional interest and investment inflows, thereby establishing a price floor for Bitcoin.

Future Outlook: Potential for New Highs

Currently, Bitcoin is trading at $66,964, marking a notable increase since the approval of 11 spot BTC ETFs by the SEC in January. This surge in price, coupled with the ongoing accumulation of Bitcoin by ETF issuers, has created a supply crunch in the market. On average, ETF issuers are accumulating around 10,000 BTC, significantly higher than the daily mining output of approximately 900 BTC. This imbalance between supply and demand, along with the anticipation surrounding the upcoming Bitcoin halving event, could potentially drive Bitcoin’s price to new highs in the future.

In short, Ju’s perspective on Bitcoin’s price floor and the impact of ETF listings highlights the dynamic nature of the cryptocurrency market and the various factors that influence price movements. While Bitcoin’s price trajectory remains uncertain, insights from experts like Ki Young Ju provide valuable perspectives for investors and enthusiasts alike.