Synthetic Bitcoins are keeping the price from going up!

Spot ETFs are buying, institutions are buying, even pension funds are buying.

So why is the price stagnating? Who is selling?

In 2024, a lot of commentators were looking at the money flowing into Spot Bitcoin ETFs, as if that was all that mattered. But what matters is overall supply and demand.

1) Old investors. They have 10x more BTC than all the ETFs combined. And they sell in every bull market.

2) We are living in the modern era of Bitcoin. Similar to gold (there is physical gold and there is paper gold), today the market is flooded with paper Bitcoins: derivatives and futures. To be fair, this process began back in 2017, but is now reaching unprecedented proportions.

So... looking solely at ETF flows is not the best strategy. You need to look at on-chain data, technical price action, and most importantly - derivatives data (Paper Bitcoins).

Сrypto enthusiast traveler

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Understanding the dynamics of Bitcoin price movements requires a holistic approach. While ETF flows are important, factors like on-chain data and derivatives trading play a significant role. The prevalence of synthetic Bitcoins in the market can impact price action, highlighting the need for a comprehensive analysis beyond traditional metrics.