The price of Bitcoin (CRYPTO: BTC) has plunged by nearly 20% so far this year. In 2024, BTC surpassed the $100,000 mark several times. Recently, BTC has traded below $80,000.
Many investors believe more pain is on the way. But the statistics below suggest bullishness, especially for longterm holders.
Bitcoin has long been a speculative asset held by those bullish on crypto. It took years for this popular cryptocurrency to gain credibility outside these circles. That was largely due to the difficulties around how to buy Bitcoin, particularly in areas related to self-custody and tax implications.
The launch of several Bitcoin ETFs in recent years has changed the game. Tens of billions of dollars have poured into Bitcoin via these channels. Huge numbers of retail investors have jumped onboard, but so too have institutional investors with deep pockets.
Gaining mass adoption from retail and institutional investors alike has been a dream of Bitcoin fanatics for more than a decade. It’s finally happening. Over the past 18 months, assets held by Bitcoin ETFs have surged from essentially zero to more than $30 billion.
Are these ETF investors selling after the recent price collapse? Prepare to be surprised.
In recent weeks, Bitcoin ETFs have actually experienced net inflows of capital. That’s a huge sign for Bitcoin’s reputation among retail and institutional investors. Even as BTC’s price has collapsed, ETF investors aren’t selling.
Long term, Bitcoin — with a current market cap of $1.6 billion — has the potential to reach gold’s market cap of $20 trillion due to its ability to act as a store of value. But to close the gap, Bitcoin needs to gain buy-in among retail and institutional investor classes. Net ETF inflows this year are a bullish sign that that is happening. It’s been a tough year for BTC holders, but metrics like this suggest that additional patience is warranted.
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