The CEO of MicroStrategy, Michael Saylor, recently provided an insightful explanation of Bitcoin’s rise against fiat currencies. Saylor emphasized that Bitcoin serves as a safeguard for investors against devaluation and reminds them of its value as a store of wealth. As a result, the world’s leading cryptocurrency regained its $67,000 price level on Friday and experienced a slight recovery earlier today.
Saylor, a vocal supporter of Bitcoin, addressed a wide audience on X, emphasizing that Bitcoin prevents the devaluation of traditional currencies for investors. His message resonated not only with Bitcoin maximalists like himself and Max Keiser but also with numerous financial institutions. Since the start of the year, the demand for Bitcoin has significantly increased, especially after the SEC approved spot Bitcoin exchange-traded funds (ETFs).
In mid-January, the regulatory body approved the trading of 11 ETFs, with ten of them aggressively accumulating Bitcoin at a rate of approximately 10,000 BTC per day. This amount is twelve times more than the daily production of 900 BTC by miners. Experts have noted that these ETFs have substantially driven up demand, leading both individual and institutional investors to follow suit and invest in Bitcoin.
In the latter half of April, the Bitcoin community experienced its fourth halving event, resulting in a reduction in the production of new Bitcoin. This event, as acknowledged by well-known Bitcoin investors, created a supply shock in the market.
According to analytics from the @spotonchain account on X, the aforementioned Bitcoin ETFs recorded a cumulative inflow of over $222 million on May 17. More importantly, this inflow remained positive throughout the current trading week, contributing to a 10% recovery in Bitcoin prices over the past seven days.
Grayscale, a prominent cryptocurrency investment firm, has seen consecutive positive inflows over the past three days. On Friday, Fidelity made the largest single-day inflow, surpassing BlackRock’s fund with a $38.1 million investment in Bitcoin, thereby adding $99.4 million to Bitcoin’s value.
Please note that the information provided in this article is not intended as investment advice. Investors should be aware of the high volatility and risks associated with cryptocurrencies and should conduct their own research.
