According to CryptoPotato, a new report by Ecoinometrics suggests that the future growth of Bitcoin is heavily reliant on spot Bitcoin ETFs. The report indicates that these funds have ceased accumulating coins for over a month, which could potentially impact Bitcoin's future price trajectory. From January to mid-March, spot Bitcoin ETFs accumulated 200,000 BTC, despite significant outflows from Grayscale. This accumulation coincided with Bitcoin's price surge from $40,000 to $75,000. However, the inflow of BTC into ETFs has since halted, leading to a stagnation in price movement.
The report states, 'If you're wondering why Bitcoin is stuck in the $60k range, look no further. The ETFs have stopped accumulating coins for a while now. They are the only game in town. No demand from them means no price appreciation.' Despite this, Ecoinometrics advises investors not to lose sight of the bigger picture, asserting that Bitcoin is the only hedge investors need against debasement.
The report also compared the performance of Bitcoin, gold, and the NASDAQ over the last decade, adjusted for the growth of the global monetary base. It found that while gold has remained flat, merely keeping pace with global liquidity, the NASDAQ has seen a threefold increase. However, Bitcoin has outperformed both by a significant margin, boasting a 44-fold increase in value. This underscores Bitcoin's effectiveness as a hedge in the current economic climate.
However, there are counterarguments from industry experts. Crypto analytics platform Kaiko, for instance, argued that Bitcoin has failed to attract safe-haven flows even amidst increased demand for such assets due to the conflict in the Middle East.
