Bitcoin supply tightening coupled with new highs in ETF scale may lead to significant volatility in the BTC market.

[Coin World] On July 11, news reports show that on-chain analysis indicates a continued tightening of market supply, with volatility compressing and accumulation pressure significantly increasing. The supply from long-term holders continues to grow, with small investors netting an additional 19,300 BTC each month, far exceeding the monthly issuance of 13,400 BTC. Additionally, about 19% of the circulating supply is concentrated within a ±10% range of the spot price, indicating that the market is sensitive to short-term price fluctuations.

In terms of ETFs, the total assets under management of Bitcoin spot ETFs in the United States have reached a new high of $137 billion, accounting for 6.4% of Bitcoin's total market value. Among them, an ETF product from a certain asset management company holds a 55% market share, becoming a dominant force. Its cost benchmark is close to the market average and the prices of active investors, further reinforcing the impact of ETFs on market psychology and price discovery.

The report points out that although the inflow of ETFs has slightly slowed down recently, the long-term trend remains strong, indicating robust institutional demand. The market is facing supply tightening and accumulated volatility, which may lead to significant price fluctuations.