Bitcoin Flows Fuel Breakout as Recession Process Continues
Bitcoin ETF Inflows Stabilize, Price About to Breakout, and SLOOS Report on Credit
The bitcoin price has been miraculously stable since the beginning of December. In today’s post, I will update you on the ETF flows and bitcoin price. Then I will use the recent Senior Loan Officer Opinion Survey from the Fed to discuss where the macro environment is going, and how it will affect Bitcoin.
Bitcoin is now firmly part of the global economy. It is currently a $850 billion force, and if this bull market results in a conservative 5x in price, bitcoin will be a $4 trillion force. Every nation on the planet must have a Bitcoin strategy. El Salvador and Argentina are leading the way with very friendly policies. It seems the EU is trying to offer a draconian alternative in the form of a CBDC in a desperate attempt to maintain control. The US has its anti-bitcoin forces but the Federal Reserve is blocking the CBDC objective, while Wall Street is embracing bitcoin.
The US is taking a market approach for the most part. The strategy is coming from behemoths like BlackRock and Fidelity, whose ETFs have now acquired a combined $5.8 billion in bitcoin (140,000 btc) in less than one month of trading. I highlighted the last 8 trading days that have all been positive net inflows.
Last week, I estimated that for early estimates for total 2024 inflows of $10 billion made by Galaxy Digital and Bloomberg analysts to be hit, the ETFs would need to have $40.8 million/day. Through 18 trading days, that average is $86.6 million including GBTC’s outflows. Important to remember however, that as price goes up, demand goes up. When price eventually succumbs to the constant buying pressure of the ETFs, this will only cause more buying pressure.
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