With bitcoin ETFs stockpiling supplies, Ethereum may emerge as an unexpected hero in 2025, changing the cryptocurrency investment landscape.
The rise in demand for spot Bitcoin ETFs in the US raises concerns about potential supply constraints, creating opportunities for Ethereum growth.
Analyst Lark Davis noted the gravity of the situation: “Demand from ETFs alone was about 272% higher than the amount supplied.”
The great interest of bitcoin ETFs is reshaping market dynamics. In December 2024, these funds bought 51,500 bitcoins, which is nearly four times the 13,850 bitcoins mined over the same time frame, according to Blockchain.com data.
Analysts confirm that the huge demand for bitcoin ETFs predicts a worrying supply scenario. As Lark Davis pointed out, during a crucial week in December, ETFs accounted for 21,423 bitcoins, while miners were only able to produce 3,150 bitcoins, demonstrating the mismatch between demand and supply.
December trends in bitcoin ETFs point to market impact
As of mid-December 2024, the total BTC held by global spot Bitcoin ETFs 1311579 BTC, with an approximate value of $139 billion. This large figure represents 6.24% of the total supply of BTC of 19.8 million, indicating its strong influence in the market.
With bitcoin ETFs expected to accumulate 10-20% of the total Bitcoin supply in a bull market, fear of a large supply shock looms. In support of this idea, Glass node reported that BTC ETFs saw notable net inflows of $4.63 billion in December.
Interestingly, this capital inflow was mainly manifested in the first half of the month, while the latter half saw some outflows, except for a marked rise on December 26.
Peter Schiff predicts Bitcoin collapse and targets Micro Strategy
eter Schiff, an American stockbroker and cryptocurrency critic, predicted another downward shift for Bitcoin (BTC) and its largest holder, MicroStrategy. Furthermore, he criticized the leverage strategy employed by the business intelligence firm, which, in recent months, has been used to acquire more BTC
In a post on X (formerly Twitter), Schiff claimed that the Trump administration would not adopt bitcoin as a backup asset. He suggested that this confirmation would prompt bitcoin holders to sell, which could negatively affect Micro Strategy.
Schiff believes that Micro Strategy and its CEO, Michael Saylor, will speed up leveraged BTC purchases to prevent a collapse. However, he predicts that these moves will only delay the collapse of BTC , eventually causing Micro Strategy shares to fall. Notably, Micro Strategy’s share price fell 9.94% on January 7, closing at $341.42.
When asked about his position, Schiff explained that he does not hate Bitcoin but opposes the “speculative obsession” surrounding it. This speculative rampage allegedly led to significant misallocation of capital, eroding financial stability and undermining sound monetary principles.
BTC price drops below $100,000
Bitcoin price fell below $100K, trading at $95,476.25 – a 6.21% drop in the past 24 hours, the $100K level remains a critical resistance level for the cryptocurrency.
The Relative Strength Index (RSI) shows a value of 46.88, which means that bears have controlled the price movement of Bitcoin on the daily timeframe. The gradient of the line also indicates that a price decline is very likely in the near future.
With the growing importance of BTC ETFs causing supply challenges, Ethereum seems poised for remarkable growth in 2025. As potential investor focus shifts, the crypto investment landscape may undergo significant changes, favoring Ethereum’s strong fundamentals and long-term growth prospects.
Bitcoin funds pay Ethereum thanks to supply constraints
With bitcoin ETFs stockpiling supplies, Ethereum may emerge as an unexpected hero in 2025, changing the cryptocurrency investment landscape.
The rise in demand for spot Bitcoin ETFs in the US raises concerns about potential supply constraints, creating opportunities for Ethereum growth.
Analyst Lark Davis noted the gravity of the situation: “Demand from ETFs alone was about 272% higher than the amount supplied.”
The great interest of bitcoin ETFs is reshaping market dynamics. In December 2024, these funds bought 51,500 bitcoins .Analysts confirm that the massive demand for BTC ETFs predicts a worrying supply scenario. As Lark Davis pointed out, during a crucial week in December, ETFs accounted for 21,423 bitcoins. In contrast, miners were only able to produce 3,150 bitcoins, thereby demonstrating the mismatch between demand and supply.”
December trends in BTC ETFs point to market impact
As of mid-December 2024, the total Bitcoin held by global spot BTC ETFs 1311579 Bitcoin, with an approximate value of $139 billion. This large figure represents 6.24% of the total supply of BTC of 19.8 million, indicating its strong influence in the market.
With bitcoin ETFs expected to accumulate 10-20% of the total Bitcoin supply in a bull market, fear of a large supply shock looms. In support of this idea, Glassnode reported that BTC ETFs saw remarkable net inflows of $4.63 billion in December, nearly double the monthly average.
Interestingly, this capital inflow was mainly manifested in the first half of the month, while the latter half saw some outflows, except for a marked rise on December 26.
