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Based on historic precedence from Gold, the Bitcoin (BTC) price may never retest the $46,376 mark, as this marked the listing price for the spot Bitcoin ETF products.
According to insights from Ki Young Ju, the Co-Founder of crypto analytics platform CryptoQuant, this $46,376 mark may be the eternal floor price of Bitcoin moving forward.
He cited the case of Gold. Notably, the precious metal’s price in 2004 was around $444 when the Gold ETF (GLD) made its debut on the New York Stock Exchange (NYSE). Since then, the asset has not retested this price.
#Bitcoin's first spot ETF was approved in January 2024 when its price was $46,376.
NYSE listed the first gold ETF in Nov 2004, and the price never came back. https://t.co/aiDB3ie4Um pic.twitter.com/y5YG4LGj07
— Ki Young Ju (@ki_young_ju) March 7, 2024
Justification for $46,376 Price Floor
Drawing on insight from May 2021, he noted that several economic factors have impacted the price of Gold since the ETF listing. Young Ju emphasized that beyond the factors, the ETF listing helped attract an inflow of funds from institutions around the globe.
While some disagreed with his thesis, the top analyst posed an analogy to counter the doubts. He asked what would become of Bitcoin if the coin existed before 2009 and its underlying ETF was listed in 2007 and gained recognition as a hedge against inflation.
He highlighted how accessibility created through an ETF is as “important as the M2 money supply,” a factor the critics argue was responsible for Gold’s parabolic surge following its NYSE debut.
Bitcoin’s Parabolic Rally Underway
With Bitcoin trading for $66,964 at the time of writing, it has grown by 44.39% since the 11 spot BTC ETFs got approved by the United States Securities and Exchange Commission (SEC) on January 11. This price level marked a correction from the All-Time High (ATH) of $69,170.63 achieved on March 5.
The supply crunch from the spot Bitcoin ETF product is already evident, as an average of 10,000 BTC is stacked up by all the issuers compared to the average of 900 BTC produced through mining per day.
Should this trend continue and be further complemented by the upcoming Bitcoin halving event, the supply-demand imbalance might help push BTC to new heights moving forward.