Spot Bitcoin ETFs in the U.S. accumulated 3x the BTC mined in Dec 2024.
In December 2024, spot Bitcoin exchange-traded funds (ETFs) in the United States made an extraordinary move, acquiring an impressive 51,500 BTC, a significant increase compared to the amount of Bitcoin mined during the same period. This figure is almost three times the nearly 14,000 BTC that Bitcoin miners produced in December, highlighting a substantial discrepancy between the demand for Bitcoin in the ETF market and the supply from miners.
The surge in Bitcoin purchases by ETFs was driven by strong momentum in the spot markets, with Bitcoin prices reaching new heights. On December 17, Bitcoin hit an all-time high of $108,135, according to CoinGecko, making it an exceptionally strong month for Bitcoin ETFs. In contrast, Blockchain.com data revealed that only 13,850 new BTC were added to the circulating supply during the month, meaning the demand from spot Bitcoin ETFs alone was about 272% greater than the supply provided by miners.
Experts are noting that this imbalance suggests there isn't enough Bitcoin available at current market prices to meet the growing demand. Jesse Myers, co-founder of Onramp Bitcoin, emphasized that in such a scenario, supply and demand must find a new equilibrium, especially as momentum in the Bitcoin market has been accelerating since November 2024, following Donald Trump’s presidential election victory, which further ignited investor enthusiasm.
On January 6, crypto researcher Vivek pointed out that a "supply shock" was imminent, driven by the sharp decline in Bitcoin exchange balances. As of January 3, Bitcoin ETF inflows had already reached over $900 million, and preliminary data suggests that January 6 could witness even higher inflows, potentially nearing $1 billion. This surge in ETF activity is signaling the growing influence of institutional demand in the Bitcoin market.
Meanwhile, Bitcoin miners have also released their production figures for December. Marathon Digital Holdings (MARA), the largest Bitcoin mining firm by market capitalization, reported producing 9,457 BTC during the month. Riot Blockchain, on the other hand, mined 516 BTC in December, marking a 4% increase over the previous month. Cleanspark, another prominent mining company, produced 668 BTC.
Core Scientific, a major player in the mining sector, reported 291 BTC mined in December from its fleet of owned miners. Bitfarms also disclosed a production of 211 BTC, while Terawulf earned 158 self-mined Bitcoin. Additionally, cloud mining service BitFuFu reported a production of 111 BTC.
These figures show a sharp contrast between the modest output of miners and the significant demand from Bitcoin ETFs, which continues to highlight the pressure on the Bitcoin market and its price dynamics in the coming months. The ongoing competition between institutional buyers and miners for a limited supply of Bitcoin is expected to contribute to future price fluctuations and increased market volatility.
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