Skip to content

QCP Capital Suggests Bitcoin ETF Inflows Could Trigger Supply Squeeze and Increased Volatility in Late 2024

2025-07-08 15:24:37

QCP Capital Suggests Bitcoin ETF Inflows Could Trigger Supply Squeeze and Increased Volatility in Late 2024

Main Idea

QCP Capital warns that Bitcoin ETF inflows could trigger a supply squeeze and increased volatility in late 2024, with institutional demand also impacting Ethereum and broader crypto markets.

Key Points

1. Bitcoin ETF inflows, particularly BlackRock’s iShares Bitcoin Trust, are reducing Bitcoin supply on the open market, potentially causing a supply squeeze.

2. BlackRock’s iShares Ethereum Trust holds about 1.5% of all ETH, highlighting the importance of monitoring ETF inflows as a market indicator.

3. Equity markets are experiencing a 'melt-up' rally, with the S&P 500 and Nasdaq 100 hitting all-time highs, influencing the crypto market environment.

4. Geopolitical risks, such as new trade deal deadlines, could impact global growth and crypto markets.

5. Institutional accumulation through ETFs is reshaping supply-demand dynamics, potentially amplifying price movements in Q3-Q4 2024.

Description

QCP Capital analysts caution that the latter half of 2024 could witness significant market volatility as ETF inflows trigger a potential Bitcoin supply squeeze. Despite Bitcoin’s current low volatility and

>> go to origin page
Tags:
News BTC