Deep-dive into Bitcoin (BTC) market trends and discover how institutional investors drive the demand for Bitcoin price in the Q2 crypto environment.
As of June 19, Bitcoin exchange reserves have dropped to a three-year low, sitting at 2,825,703 BTC, a steep decline from January’s 3,039,000, per CryptoQuant data.
This drop suggests less selling pressure and a potential supply crunch, driven by institutional demand.
Here’s which players in big finance are making their moves and why BTC price might rocket soon.
Q2 Snapshot: The Impact of Bitcoin ETFs on The Coming Bull Market
While Bitcoin spot ETFs got approved in January 2024, heavy hitters like BlackRock have stockpiled spot BTC, tightening the market environment.
Additionally, as of June 6, BlackRock’s iShares Bitcoin Trust boasted 274,000 BTC, part of the ETF surge driving institutional demand.
“This is really the first wave of the early adopters, and I think the next wave is the much bigger institutions,” Franklin Templeton CEO Jenny Johnson told CNBC.
In May alone, digital asset funds drew $2 billion, mostly into Bitcoin. Coinshares’ June 17 report showed Bitcoin investment vehicles hold nearly $73 billion worldwide.
But the week of June 15 saw a $621 million exodus, courtesy of hawkish Fed comments on interest rates.
DISCOVER: How to Buy Bitcoin ETF in Q2 2024 – Beginners Guide
The April 2024 Halving and Its Effects
Adding to the supply crunch, Bitcoin’s April 2024 halving event slashed miner rewards from 6.25 to 3.125 BTC per block, tightening the supply.
Despite the squeeze, the market stays strong. On Wednesday, Bitcoin price rose +1.5% to $66,300. Ether climbed +2% to $3,600.
The Bitcoin bears are completely f*cked. While they’re prancing around celebrating a routine 15% bull market correction, BTC is preparing to wake up and tear faces completely off heads. It’s going to be a bloodbath unlike any seen in history and it could begin at any moment.
— Mike Alfred (@mikealfred) June 20, 2024
The CoinDesk 20 Index nudged up 1%, led by Avalanche’s AVAX with a 3.9% gain. Ripple’s XRP jumped 1.5%, while Solana’s SOL edged up 1.3%, as traders eye upcoming U.S. spot ETH ETFs.
On the international front, VanEck’s BTC ETF (VBTC) debuted on the Australian Securities Exchange, a first for the ASX. The day ended at A$20.06 ($13.40), up 1%, with 99,791 shares traded.
With low reserves, increasing institutional interest, and less new Bitcoin, the future beyond Q2 for BTC looks bullish. The squeeze is coming – hold on tight.
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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
