Bitcoin spot ETFs have generated exceptional interest in Bitcoin, highlighting the growing acceptance of the cryptocurrency in the markets.
In an interesting video posted on YouTube, American national bank TD Bank has highlighted the importance of Bitcoin, the cryptocurrency that leads the market, with a market capitalization of more than $1,38 trillion.
In the video, which is a kind of one-and-a-half-minute commercial, the bank delves into the factors that have driven the bitcoin price towards new all-time highs (ATH) in 2024, highlighting mainly the new halving that will arrive on the blockchain network next week, and the spot ETFs that were approved in the United States in January.
Spot ETFs have increased demand for Bitcoin
The video published by TD Bank emphasizes that the approval of spot ETFs has increased the demand for the cryptocurrency, and with it, its price in the market.
With this video, the bank wants Educate investors and the general public on how the price of cryptocurrency is determined, which fluctuates based on market supply and demand. Thus, when there is more demand from buyers than supply from sellers, the price of BTC rises. Otherwise, an increase in supply and a decrease in demand would cause the price of the cryptocurrency to fall, the bank explained.
TD Bank emphasized The approval and subsequent listing of Bitcoin ETFs on the US market significantly increased the demand for BTC. This, without a noticeable increase in the supply of the cryptocurrency. In relation to the latter, the American bank also emphasized that a historic event is about to occur that will actually reduce the supply of new bitcoins entering the market. This historic event, known as halving, will occur again on the blockchain network at block height #840.000, which will be mined on April 20, according to estimates.
The impact of halving
Beyond the impact on the cryptocurrency's price, the bank explained that the halving is designed to ensure that the total supply of BTC, which is set at 21 million units in its protocol, is slowly introduced into the market. In the video, it is explained that:
“Only 21 million (Bitcoin) coins can be created. But instead of flooding the market with all the coins at once, a supply of new coins is slowly released into the market every day.”
The design of the halving, which takes place approximately every 4 years on the blockchain, reduces the issuance of new bitcoins and favors a decrease in the inflation rate.
Because of this, historically, halvings have had a major impact on the cryptocurrency’s price performance. “After each halving, the price of BTC jumped significantly,” the bank said, noting that while this does not guarantee that the price will rise substantially again, there are other factors such as spot ETFs that, together with the halving, could lift BTC to new heights.
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