This is how Bitcoin ETF earnings affect the price movement of BTC.

Bitcoin Exchange Traded Fund (ETF) entry from the new position is the main reason why BTC has seen a significant increase, above $50,000 and above $52,000.

Marc van der Chijs, founder of several crypto firms including MinerHat 8, tweeted that ETF issuers are buying 10-12x the amount of BTC produced daily, leading to a 2% price increase. That's about $1,000 a day.

The impact of ETFs on the price of BTC

Chiggs' analysis of post-ETF Bitcoin charts shows that most price increases occur during settlement before the US market opens.

Users are selling their holdings to fill ETF orders, as earnings are 10-12 times greater than the amount of newly minted BTC. These sales are often overpriced because users don't think BTC is reaching a peak. Higher prices cause more fear or loss (FOMO) among ETF investors, which creates more demand and subsequently increases US dollar prices.

While Chiges believes the market is uncharted territory, he thinks each trading day will see an average increase of $1,000 in the coming weeks.

The supply of income is alarming

The founder of Hut 8 has listed two upcoming events that could significantly increase the daily average increment price over the next three months.

After Bitcoin's halving next April, miners' rewards will be halved, thereby reducing the amount of BTC mined each day. Currently, around 900 BTC are generated every day, but after the event, only 450 BTC will be generated. Chiggs said that the drop in yields will make BTC more valuable as ETF issuers scramble to increase their holdings.

Because of the risk of failure of new ETFs in the near term, most financial advisors allow the sale of shares after 90 days of trading. Since the production started in January, Chiges expects demand to increase further in early May, which will have a positive effect on the price of BTC.

“This means that unless there is a black swan event, we will see a new all-time high (>$69K) before it declines, and we will probably hit $100K in the next 2-3 months,” Chige said.