Bitcoin Prices Soar as New ETFs Boost Demand: What's Next for BTC

Recent Bitcoin ETF introductions are pushing BTC prices up, with issuers purchasing over ten times the daily Bitcoin output, leading to a daily price jump of approximately $1,000, or 2%. BTC's recent price surge, breaking the $50,000 mark to reach above $52,000, is mainly due to new spot Bitcoin ETFs. Marc van der Chijs, a notable figure in the crypto industry and founder of Hut 8, highlights that ETF issuers' massive buying is causing this uplift. He notes that most price hikes happen right before the U.S. market opens, during the ETF settlement period.

ETFs are causing a supply and demand imbalance. With daily inflows vastly outnumbering new Bitcoin production, investors are offloading their Bitcoin to meet ETF demands, driving prices up. This rise encourages more ETF investments due to fear of missing out, further boosting Bitcoin's value. A potential price increase is anticipated in the coming weeks, with Chijs predicting a consistent daily rise of $1,000. He also points to two significant upcoming events that could further accelerate price growth: the Bitcoin halving and the sale of new ETF shares.

The Bitcoin halving in April will reduce daily Bitcoin production by half, from 900 to 450 BTC, likely causing a price surge as ETFs compete for fewer Bitcoins. Additionally, the sale of new ETF shares, expected to start in early May, could further increase demand and Bitcoin's price. Chijs optimistically predicts a new record high for Bitcoin before the halving, potentially reaching $100K in the next few months, barring any unforeseen major market disruptions.