FOMO on Bitcoin ETFs is in full swing. BTC breaks USD 51000

Only after the first week of February can we find out what it means launch of bitcoin ETFs, the price of which shot up above USD 51000 this morning. Until then, an important factor keeping the price of the cryptocurrency in check was the supply from GBTC. In January it amounted to over USD 400 million a day, and then shrank to less than USD 200 million at the turn of the month and dropped in the first week of February to levels below USD 100 million on average. Decline in supply from GBTC and no decline in demand for others ETFs led to a huge imbalance of demand and supply, which is reflected in the increase in the price of bitcoin.

The demand for ETFs exceeds the supply of bitcoin

The daily supply of bitcoin is 900 pieces, and since February 8, we have been observing demand from ETFs exceeding this supply by 10, 13, 11 and 14 times the daily supply of BTC, respectively! On average, each day for the past four sessions, demand has been more than 10 times higher than daily supply Bitcoin. Thanks to this, in total, net ETFs accumulated BTC worth over USD 3,7 billion, and the inflow during yesterday's session was the largest since the day the ETFs were launched and exceeded net USD 600 million. It is worth adding that this took place at a time when there was great uncertainty in the markets related to the higher than expected inflation reading in the USA. Many traditional assets have been overvalued, and Bitcoin has more than made up for all of yesterday's losses.

How long can the price of bitcoin go up?

This question is difficult to answer at this point because hot money from Wall Street they can decide at any time that they want to realize profits after such dynamic growth. However, they may also decide that as long as the market is going up, it is worth adding new funds to it. However, since Bitcoin made a perfect U-turn after the correction on January 23, which was the seasonal multi-year turning point, the next seasonal turning point is February 19, five days away. If bitcoin is to continue to "listen" to the seasonal pattern, it is worth observing the price behavior around this date to see if it is characterized by a tendency to distribute or reverse in the quotations. Statistically, a new growth impulse could appear from March 14. Will it be so? Will the seasonal pattern continue as in January? We will find out soon, and with such dynamic price behavior, it is worth being especially vigilant.