TL;DR
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The demand for the Bitcoin ETFs are pushing BTC’s worth up (hoooray!), but in addition concentrating BTC possession, permitting for better worth manipulation (boooo!).
Full Story
“Everybody has a worth.”
That’s just about the driving issue of Bitcoin’s worth.
If there’re extra patrons than sellers, the worth goes up in an try and persuade holders to promote.
…and if that isn’t profitable? The worth goes up even additional.
As of this writing, the US Bitcoin Trade Traded Funds (aka: ETFs, aka: funds that purchase Bitcoin each time somebody buys a share of their fund) personal a whopping 5% of the 21,000,000 Bitcoin provide.
And if US inventory traders’ urge for food for BTC continues, that’s most likely going to extend — resulting in a provide crunch, the place the worth shoots up in an try and sway long-term holders into promoting their BTC.
These are the advantages of the Bitcoin ETFs…
The darkish facet of all of it?
These ETFs aren’t being purchased up by a big swath of retail traders as a lot as they’re a choose few ‘huge canine’ funding corporations.
That sort of focus places loads of energy within the palms of some.
That means they’ll:
Unload a small portion of their holdings → dump the BTC worth → solely to purchase all of it again (after which some), giving them a good better share of BTC’s provide.
Excellent news/dangerous information?
This kind of manipulation was happening lengthy earlier than the ETFs had been round…
So in some ways, it’s enterprise as typical — simply with increased costs.
(Hooray? ¯_(ツ)_/¯)