Bitcoin price oscillates around USD 52000 - Wall Street is not letting up

This week will likely feature the highest average inflows into ETFs since their launch over a month ago. On Monday, net inflows were $493 million, Tuesday saw the largest inflow since the first day of ETF trading at $631 million, Wednesday added $339 million and Thursday added $477 million. Total net inflows have contributed over $4,5 billion since the launch of Bitcoin ETFs.

All the above news seems to be very good for the demand side, but the only worse news is that again at such high prices bitcoin, more supply from GBTC was launched. It surpassed $131 million on Wednesday and Thursday, marking the biggest sell-off since February 1.

Wall Street is buying BTC at a rate many times higher than the daily supply of BTC

The daily supply of BTC is 900 pieces, while in the past week ETFs have consumed multiples of Bitcoin's daily supply. On Monday it was 11x, on Tuesday 14x, on Wednesday 7x and on Thursday 10x. Currently, you may be wondering what if demand does not drop, and in two months there will be a bitcoin halving, where the daily supply will drop by half. Will this lead to a supply shock?

Good mood on Wall Street

There is still a good mood on the American stock exchange, which seems to be supported by liquidity effects, for example a further decline in reverse repo. There is now less than USD 500 billion of excess liquidity left in the US market, but this is still a significant amount that could flow into financial markets by April (if the same rate of decline in reverse repo as in previous months was maintained). As a result, markets they are not currently concerned about high bond yields nor weaker data like yesterday's US retail sales data. In fact, the weakening USD seems to be helping risky assets.

This is starting to resemble a picture of FOMO, where investors and speculators are afraid of being left without assets that are rushing faster and faster, and unfortunately history shows that this can end quite painfully. Nevertheless, for now the music is playing, so the mood is good. This is also an important phenomenon for cryptocurrencies, including BTC or ETH, which increased to $2800.