Behold, the tale of a digital coin, whose price shall soar like a falcon in the sky, if only the ETFs do not devour its supply with the voracity of a Cossack in a tavern! 🐴💸
Bitcoin’s Parabolic Setup Is Forming as ETFs Consume Supply, Says Bitwise 🦅
Behold, the Chief Investment Officer of Bitwise, Matt Hougan, a man of profound wisdom and questionable sanity, declared on the hallowed halls of X (formerly Twitter) that sustained bitcoin ETF buying could drain the supply like a drunkard siphoning a wine cellar, setting the stage for a price surge so fierce, it would make the Tsar’s beard tremble! 🧙♂️🔥
He stated:
“Bitcoin’s price will go parabolic if ETF demand persists long-term. A lesson from gold’s 2025 move. 🧾”
Hougan expanded the comparison, stating: “The price of both gold and bitcoin are set by supply-and-demand. The popular story is that gold prices spiked in 2025 (up 65%) because central bank purchases tilted the supply-demand balance. History teaches us something different, and tells us what’s happening with bitcoin.” He traced the shift back to 2022, when central banks sharply increased gold accumulation following geopolitical and financial tensions, arguing that the buying surge altered market structure long before prices reacted. According to Hougan, early demand was absorbed by willing sellers, muting price responses for several years despite persistent purchases. 🏛️💸
Alongside his commentary, Hougan also shared a visual chart illustrating a decade of central bank gold purchases, reinforcing his thesis with historical data. The chart shows that annual gold buying averaged roughly 400 to 600 tonnes between 2014 and 2019, dropping sharply in 2020 before rebounding to about 450 tonnes in 2021. Purchases then accelerated dramatically, exceeding 1,000 tonnes in both 2022 and 2023, and remained elevated in 2024, representing a more than 100% increase compared to the 2014-2016 period. 📊💰
The Bitwise CIO connected that persistence to gold’s delayed price acceleration, explaining:
“The same thing is happening with bitcoin and ETFs. Since ETFs debuted in Jan 2024, they’ve been buying more than 100% of the new supply of bitcoin. But the price hasn’t gone parabolic, because existing holders have been willing to sell.”
“If ETF demand persists – and I think it will – eventually, these sellers will run out of ammo. And when they do…,” he concluded. The comparison framed bitcoin as an asset experiencing prolonged absorption rather than immediate repricing, with constrained supply and steady institutional inflows gradually tightening market conditions. 🧱📉
FAQ ⏰
- Why does Matt Hougan compare bitcoin ETFs to gold purchases?
He argues both assets experienced years of heavy institutional buying, much like the Russian peasantry enduring the yoke of the nobility, before their prices finally rose, as if by magic, to the delight of all! 🧑🌾🎩 - How much bitcoin supply are ETFs absorbing?
Hougan says ETFs have been buying more than 100% of new bitcoin supply since Jan 2024, a feat so audacious, it would make a Cossack’s beard blush! 🐴😳 - Why hasn’t bitcoin gone parabolic yet?
Existing bitcoin holders have been selling into ETF demand, delaying price acceleration like a drunkard delaying a fall. 🍷📉 - What could trigger a sharp bitcoin price move?
A depletion of willing sellers as sustained ETF demand tightens available supply, a scenario so dramatic, it would make the Tsar weep into his tea! 🍵👑
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2026-01-18 03:58