Bitcoin News Today: Bitcoin Demand Surges 44% Above Supply as New Buyers Accumulate

Bitfinex, a prominent digital asset exchange, has observed a notable trend where retail demand for Bitcoin is outpacing the available supply. This phenomenon is occurring as Bitcoin continues to demonstrate strong upward price movements, driven by interest from major industry players. The supply shock underscores the increasing appeal of Bitcoin among new market participants, despite its high value.

According to Bitfinex analysts, first-time Bitcoin buyers are accumulating the asset at a rate of 19.3K BTC monthly, which exceeds the 13.4K BTC issued post-halving. This rapid accumulation by new buyers, who are seen as price-agnostic, could have a positive impact on Bitcoin's price. Price-agnostic buyers focus on future trends and market fundamentals rather than the current price of the asset.

The demand from these new cohorts is sufficient to absorb any fresh supply, and they are constantly acquiring the asset regardless of the price. This trend supports the broader bullish narrative that new buyers entering the Bitcoin market are relentlessly accumulating with limited intervals. This trend coincides with Bitcoin’s recent price highs, particularly driven by increased institutional investment. The spot BTC ETF industry continues to command a large portion of the Bitcoin market activity. In fact, US spot Bitcoin ETF inflows reached over $2.7 billion in the past week, surpassing the mined supply in the same period.

Among these investment vehicles, BlackRock’s iShares Bitcoin Trust (IBIT) led a wave of institutional interest in Bitcoin. IBIT reached $80 billion in assets under management as of Thursday, becoming the fastest ETF in history to reach that level, achieving it in just 374 trading days. IBIT has now overtaken BlackRock’s flagship S&P 500 ETF in revenue generation. The total assets held across all 11 spot Bitcoin ETFs exceeded $140 billion last week.

As of now, Bitcoin has surpassed both silver and Amazon to become the fifth-largest asset by valuation, holding a market capitalization of $2.43 trillion. Meanwhile, the first-born asset touched a new all-time high of $123,091 on July 14 before retracing to $117,000 at the time of writing. Financial commentators have pointed to Bitcoin’s fixed supply cap of 21 million coins as a key value proposition. They also note that the current supply squeeze could push prices higher.

Even as the OG coin continues its bullish ascent, some sector commentators caution against a potential impending volatility. Redstone co-founder Marcin Kazmierczak warned that, while many market experts set short-term BTC price targets as high as $140,000, history shows that “parabolic moves” are often succeeded by “sharp corrections.” Kazmierczak asserted that “volatility remains Bitcoin’s constant companion,” highlighting the large number of leveraged positions lost over the past day as a reminder. According to CoinGlass data, about $430 million in short positions were liquidated as Bitcoin crossed $121,000.

The Redstone co-founder urged market participants to carefully approach future BTC price milestones rather than being frenzy-driven. He added that it’s important for investors to thoroughly analyze positions, especially given the rising market sentiments. On Monday, the crypto market’s Fear & Greed Index recorded a fifth consecutive day of Greed, pegged at 74. For clarity, this indicator measures the overall emotional state of investors. Despite this positive market feeling, Santiment analyst Brian Quinlivan advised caution, adding that a similar surge in optimism preceded BTC price dips in the past. Some analysts have also expressed concern about the adopted by corporate Bitcoin treasuries, questioning its sustainability.