MicroStrategy CEO Michael Saylor recently provided a thought-provoking explanation of Bitcoin’s upward movement against fiat currencies. Saylor emphasized that Bitcoin serves as a safeguard against devaluation and serves as a reliable store of value. As a result, the world’s leading cryptocurrency reclaimed the $67,000 price level on Friday and briefly reached this level again today.
Saylor, a vocal advocate for Bitcoin, addressed a wide audience on X, underscoring how Bitcoin protects investors from the devaluation of traditional currencies. His message resonated not only with Bitcoin maximalists like Saylor and Max Keiser but also with numerous financial institutions. Since the start of the year, the demand for Bitcoin has surged, particularly after the SEC approved spot Bitcoin exchange-traded funds (ETFs).
In mid-January, the regulatory body granted approval for these ETFs to commence trading. Currently, there are a total of 11 ETFs, with ten of them aggressively accumulating Bitcoin at a rate of approximately 10,000 BTC per day. This amount is twelve times more than the 900 BTC produced daily by miners. As experts have pointed out, the introduction of ETFs has significantly boosted demand, prompting both individual and institutional investors to follow suit and invest in Bitcoin.
In the latter half of April, the Bitcoin community experienced its fourth halving event, which led to a reduction in the production of new Bitcoin. This event created a supply shock, as noted by prominent Bitcoin investors.
Furthermore, according to the @spotonchain analytics account on X, the aforementioned Bitcoin ETFs recorded a cumulative inflow of over $222 million on May 17. Notably, this inflow remained positive throughout the current trading week, contributing to Bitcoin’s price recovery of over 10% in the past seven days.
Grayscale has also seen consecutive positive inflows over the past three days, with Fidelity making the largest single-day inflow on Friday. Consequently, this ETF has surpassed BlackRock’s fund with a $38.1 million Bitcoin inflow, adding $99.4 million to Bitcoin.
Please note that the information presented in this article does not constitute investment advice. Investors should be aware that cryptocurrencies are highly volatile and carry inherent risks. It is advisable for investors to conduct their own research.
