#精品内容 institutional demand for Bitcoin ETFs has reduced the volatility of BTC
Despite the tariff chaos, Bitcoin ETFs are still in the top 1% of the category. Analysts believe that the issuer has stabilized Bitcoin's volatility and that the ETF market will make BTC safer in the future. Issuers are like whales, buying tokens from individual investors. However, this new stability depends entirely on whether these powerful companies face broader macroeconomic issues. Do ETFs keep Bitcoin stable? The threat of Trump's tariffs has brought chaos and uncertainty to global markets, but the price of Bitcoin has held relatively well. Despite retreating from its all-time high in January, its price level is still well above what it was before the November election. According to one analyst, ETFs can provide additional stability to Bitcoin: "Bitcoin ETFs have seen positive inflows over the past month and year-to-date, with IBIT +$2.4bn year-to-date, (Top 1% ). This is impressive, and I think it explains why the price of BTC is relatively stable: its holders are much more stable. ETF investors have a much stronger hand than most people think. In the long run, this should increase stability and reduce volatility and correlation," Eric Balchunas said. Bitcoin ETFs have revolutionized the crypto industry since their launch, but the shift has been difficult to measure. However, this looming economic crisis has given analysts the opportunity to gather reliable data from stress tests. Balchunas highlighted that ETF issuers have shown strong demand for BTC, which has led to some changes. Over the past few months, US ETF issuers have bought a large amount of Bitcoin. In December last year, they collectively surpassed Satoshi Nakamoto's holdings, and in January, they bought 20 times the world's mining production. Who is to blame for this apparent supply crisis? Retail investor. Bitcoin is more integrated with traditional finance than ever before, which presents many opportunities. Whatever the reason, retailers are forced to dump their tokens. Normally, such behavior scares the market, but ETF issuers (and Michael Saylor Strategy) have been eager to buy as much Bitcoin as possible. In other words, these whales have done a lot of work to maintain confidence in the market as a whole. Ideally, ETF issuers will have most of the positive impact on the sector, potentially improving Bitcoin's notorious long-term volatility. Unfortunately, even ignoring concerns about decentralization, this major change comes with serious practical flaws. Since ETFs have transformed the market in this way, Bitcoin has become more closely intertwined with broader macroeconomic trends than ever before. But these trends may force these big whales to sell. Can we afford to pin the fate of Bitcoin on these actors? ETF issuers have a high level of confidence in Bitcoin, which has maintained price stability throughout the tariff turmoil. If they lose this confidence for any reason, there will be a strong demand crisis. This investment trend has greatly benefited the crypto industry, but it is important to consider the potential risks involved.
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#精品内容 institutional demand for Bitcoin ETFs has reduced the volatility of BTC
Despite the tariff chaos, Bitcoin ETFs are still in the top 1% of the category. Analysts believe that the issuer has stabilized Bitcoin's volatility and that the ETF market will make BTC safer in the future.
Issuers are like whales, buying tokens from individual investors. However, this new stability depends entirely on whether these powerful companies face broader macroeconomic issues.
Do ETFs keep Bitcoin stable?
The threat of Trump's tariffs has brought chaos and uncertainty to global markets, but the price of Bitcoin has held relatively well. Despite retreating from its all-time high in January, its price level is still well above what it was before the November election.
According to one analyst, ETFs can provide additional stability to Bitcoin:
"Bitcoin ETFs have seen positive inflows over the past month and year-to-date, with IBIT +$2.4bn year-to-date, (Top 1% ). This is impressive, and I think it explains why the price of BTC is relatively stable: its holders are much more stable. ETF investors have a much stronger hand than most people think. In the long run, this should increase stability and reduce volatility and correlation," Eric Balchunas said.
Bitcoin ETFs have revolutionized the crypto industry since their launch, but the shift has been difficult to measure.
However, this looming economic crisis has given analysts the opportunity to gather reliable data from stress tests. Balchunas highlighted that ETF issuers have shown strong demand for BTC, which has led to some changes.
Over the past few months, US ETF issuers have bought a large amount of Bitcoin. In December last year, they collectively surpassed Satoshi Nakamoto's holdings, and in January, they bought 20 times the world's mining production. Who is to blame for this apparent supply crisis? Retail investor.
Bitcoin is more integrated with traditional finance than ever before, which presents many opportunities. Whatever the reason, retailers are forced to dump their tokens.
Normally, such behavior scares the market, but ETF issuers (and Michael Saylor Strategy) have been eager to buy as much Bitcoin as possible.
In other words, these whales have done a lot of work to maintain confidence in the market as a whole. Ideally, ETF issuers will have most of the positive impact on the sector, potentially improving Bitcoin's notorious long-term volatility.
Unfortunately, even ignoring concerns about decentralization, this major change comes with serious practical flaws. Since ETFs have transformed the market in this way, Bitcoin has become more closely intertwined with broader macroeconomic trends than ever before.
But these trends may force these big whales to sell. Can we afford to pin the fate of Bitcoin on these actors?
ETF issuers have a high level of confidence in Bitcoin, which has maintained price stability throughout the tariff turmoil. If they lose this confidence for any reason, there will be a strong demand crisis.
This investment trend has greatly benefited the crypto industry, but it is important to consider the potential risks involved.