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

https://debank.com/profile/0x3150bdcda1b41e0f2a550955839f6b2c723ad0b7

Understanding the dynamics of synthetic Bitcoins and their impact on the market is crucial in analyzing the current price stagnation. It's not just about ETF flows, but also about the influence of old investors and the abundance of paper Bitcoins in the market. Delving into on-chain and derivatives data is key to grasping the full picture.