Bitcoin Supply Distribution Begins But Sustained Bull Market to Continue: Analysis

On March 7, crypto analyst Dylan LeClair posted a lengthy report on the current state of the Bitcoin market.

“Supply distribution has started,” he said, highlighting how Bitcoin holders have started to sell as new market entrants emerge, namely exchange-traded funds.

However, there was no reason to be concerned because the ETFs are seeing massive demand and are hoovering up more coins every day.

“A clear takeaway should be just how strong distribution can become during a raging bull market while price is still going parabolic.”

Bitcoin Rally to Continue

ETF demand has “surpassed most all initial expectations, with increasing strength into the rally,” he said.

Moreover, the nine new funds continue to break records in terms of inflows and daily trading volumes almost two months after they launched.

On March 5, BlackRock’s IBIT fund saw a record $788 million in inflows on the same day that Bitcoin prices reached a new all-time high.

Moreover, BlackRock and Fidelity alone have bought 284,000 BTC since launch, which is greater than 1% of the total Bitcoin supply.

General $BTC market outlook update:

Supply distribution has started. Here’s what I’m looking at and how it compares to previous cycles, and what might come next:

First off, the biggest story is obviously the ETFs. $IBIT has been the most succesful ETF launch in history by a… pic.twitter.com/fFspyrwgsn

— Dylan LeClair 🟠 (@DylanLeClair_) March 6, 2024

Nevertheless, the Bitcoin distribution is still in its early stages and is being overwhelmed by the new demand from ETFs and institutional investors.

Catalysts for further Bitcoin adoption and price appreciation include continued ETF inflows, corporate adoption, and potential sovereign accumulation by countries looking to move away from the U.S. dollar hegemony.

LeClair predicted that the distribution of Bitcoin by long-term holders will increase as new price highs are reached. However, this supply is likely to be absorbed by the growing institutional demand, leading to a sustained bull market.

“In summary, yes, incumbent HODLers have begun to slightly distribute, but they are currently being met by an insatiable wall of money. It’s going to be a wild ride ahead.”

BTC Price Outlook

Bitcoin prices had returned to the $66,000 level where they have remained for the best part of the past 24 hours. The asset is currently 4.6% down from its new peak price reached earlier this week.

Speaking on CNBC this week, billionaire entrepreneur Mark Cuban appeared extremely bullish on Bitcoin, stating that there’s only going to be 21 million coins before adding:

“The more people that buy and the fewer people that sell means the price is going to go up. I have an investment in it because it’s a great SoV. I think demand is going to exceed the number of people selling.”

Billionaire entrepreneur, Mark Cuban, calls #Bitcoin a great store of value and states that he expects the price to go up due to supply and demand.

It wasn’t long ago he claimed Bitcoin was worthless. The narrative is changing 🤯 pic.twitter.com/uNPhizebrl

— The ₿itcoin Therapist (@TheBTCTherapist) March 6, 2024