Bitcoin’s Supply Dynamics and ETF Demand Support Price Stability
- September saw a net withdrawal of 44,000 BTC, tightening available supply.
- US-listed spot Bitcoin ETFs attracted $2.2 billion in net inflows, significantly exceeding daily mined Bitcoin.
- BTC has traded within a narrow range of 2.3% as investors await the Federal Reserve’s interest rate decision.
- Current estimates show 2.96 million BTC still held on exchanges, although many are not actively offered for trading.
- Overnight lending rates reached 4.42%, indicating tighter market conditions, while banks borrowed $1.5 billion from the Fed.
The reduction in Bitcoin supply and strong demand from ETFs have created a supportive environment for BTC prices near the current level of $116,000. The upcoming Federal Reserve announcement may further influence market dynamics but is expected to have a modest impact on Bitcoin’s trajectory.
With ongoing ETF accumulation and significant withdrawals, Bitcoin could maintain its price stability around $116,000 despite external economic pressures.(Source)
