Key Points
- Bitcoin [BTC] surpassed the $70k mark, causing a 6% increase in Open Interest (OI).
- Demand for BTC is approximately five times greater than supply, largely due to the recently launched spot ETFs in the U.S.
Bitcoin [BTC] Breaks New Record
Bitcoin [BTC], the world’s largest cryptocurrency, recently surpassed the $70k level. This significant milestone came just a few days after the digital asset broke its previous all-time highs (ATH).
In the past 24 hours of trading, the king coin saw a 1.40% rise, as reported by CoinMarketCap. Since the start of 2024, Bitcoin has experienced a 65% increase and it seems set for further gains.
Increasing Demand and Open Interest
This historic climb resulted in a 6% surge in Open Interest (OI) in Bitcoin futures, pushing it above $32 billion. This ascent is largely attributed to the soaring demand from the recently launched spot ETFs in the U.S.
On March 8th, nearly $223 million worth of Bitcoins were purchased by issuers. Consequently, the cumulative net inflows since the listing day rose to a staggering $9.59 billion. Currently, Bitcoins worth $55.5 billion are backing these spot ETFs, making up more than 4% of Bitcoin’s total supply.
In contrast, the network is only producing Bitcoins at a rate of $45 million per day. This signifies that the demand for Bitcoin is approximately five times greater than its supply.
Bitcoin’s Exchange Supply and Future Prospects
Despite Bitcoin’s exchange supply continuing to decrease, over 4% of its total supply is still available for trading. This is happening even with a 100% network profitability. It appears that long-term holders (LTH) are not seeking profits just yet, but are using Bitcoin as a store of value.
With the upcoming halving expected to further decrease block emissions, and the strong demand, it’s likely that Bitcoin’s northward surge will continue.
