Bitcoin ETFs Absorb More BTC Than Miners Can Supply – What to Do?
The institutional demand for Bitcoin, particularly through exchange-traded funds (ETFs), has surged dramatically, outpacing the production capabilities of miners. According to an article by Crypto News Flash titled "Bitcoin-ETFs Absorb More BTC Than Miners Can Supply – What to Do?", this imbalance is causing concerns about market stability. The report highlights that in a recent week, spot-BTC ETFs saw inflows amounting to $423.6 million or 4,349.7 BTC—almost double the number mined during the same period.
This unprecedented demand from institutions underscores significant liquidity challenges within the market as highlighted by historical data showing ETF inflows reaching $817.5 million in early November when Bitcoin prices dipped slightly to around $86,855 per coin. Analysts warn that if these trends continue without adequate miner supply adjustments or price corrections below critical thresholds like $90,000 per Bitcoin—as suggested by Sean McNulty from Arbelos Markets—the asset could face further liquidations.
Moreover, JPMorgan Research notes a decline in daily block reward revenues which fell by 2% recently largely due to increased network difficulty and reduced electricity credits post-April's halving event where mining rewards were cut significantly impacting profitability margins across major players including Riot Platforms who reported losses totaling up to $154 million compared against previous year's figures standing at just over half that value ($80 million). Despite such setbacks, however, CEO Jason Les remains optimistic citing improved hash rates driving revenue growth upwards towards approximately $85 million marking a 65% increase year-on-year basis alongside steady quarterly output levels equating to roughly 1,104 Bitcoins produced throughout Q3 alone!
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