Bitwise: If demand for ETFs remains strong over the long term, the price of BTC will enter a phase of parabolic growth
Svmuu News: Matt Hougan, Chief Information Officer at Bitwise, posted on X stating that if ETF demand persists over the long term, the price of BTC will enter a phase of parabolic growth. Citing the 65% rise in gold prices in 2025 as an example, Matt Hougan pointed out that the prices of both gold and BTC are determined by supply and demand. After the U.S. seized Russian government bond deposits in 2022, annual gold purchases by central banks increased from approximately 500 tons to about 1,000 tons and have remained stable since then. This demand shifted the supply-demand balance but was not immediately reflected in prices. Gold prices rose by 2% in 2022, 13% in 2023, and 27% in 2024, with parabolic growth not occurring until 2025. This is because demand in the preceding years was met by holders willing to sell; once selling pressure subsided and demand persisted, prices surged significantly. A similar situation currently exists with BTC and ETFs. Since the ETF’s debut in January 2024, its purchase volume has exceeded 100% of BTC’s new supply. Because existing holders are willing to sell, prices have not yet entered a parabolic phase. If ETF demand persists, selling pressure from existing sellers will eventually be exhausted.
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Disclaimer: This content reflects the author's personal views only and does not constitute investment advice.
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