Bitcoin ETFs Essential for Maintaining Current Market Buying Pressure
The price of Bitcoin increased by 14.74% in the past month, reaching a local peak of $73,149 on October 29, according to CoinMarketCap. CryptoQuant CEO Ki Young Ju noted that specific conditions are necessary to sustain this price gain.
Low Stablecoin Exchange Reserve and Bitcoin ETFs
In a series of X posts on November 1, Ki Young Ju indicated that the current stablecoin liquidity is insufficient to support ongoing Bitcoin buying pressure. Traders typically use stablecoins to purchase volatile assets like Bitcoin due to their fixed dollar value.
A higher stablecoin exchange reserve could facilitate significant price gains through widespread purchases. However, crypto exchanges currently hold only 21% of the total stablecoin market, amounting to $34 billion out of $166 billion. Most stablecoins are utilized for storage or remittances. This figure represents a modest increase from the $30 billion recorded in September 2021 during the previous bull run, despite a 33% growth in total stablecoin shares during the same period.
The Bitcoin-to-stablecoin reserve ratio stands at 6.05, comparable to levels seen at the last all-time high (ATH). To maintain Bitcoin's upward trend, Ki Young Ju asserts that Spot Bitcoin ETFs and Coinbase USD reserves must enhance market liquidity.
Spot Bitcoin ETFs have contributed significantly to Bitcoin’s rally, with inflows exceeding $5 billion over the past three weeks, led by BlackRock's IBIT at $4.44 billion. Maintaining momentum in ETF investments is crucial; a slowdown could reduce buying pressure, particularly from firms like Coinbase Prime, potentially leading Bitcoin back into consolidation.
Bitcoin Price Overview
As of now, Bitcoin is trading at $69,608, reflecting a 1.32% loss in the past 24 hours. Its trading volume has increased by 25.61%, totaling $51.56 billion.
A return to above $73,000 remains plausible, especially with sustained ETF flows and upcoming US elections. Should pro-crypto Donald Trump win, Bitcoin could reach new all-time highs, with projections between $90,000-$100,000 by the end of 2024.
