Odaily Planet News: Bitwise's Chief Information Officer, Matt Hougan, posted on the X platform stating that if the demand for ETFs continues in the long term, the price of BTC will enter a parabolic growth phase. Hougan cited the 65% increase in gold prices in 2025 as an example, pointing out that the prices of both gold and BTC are determined by supply and demand.
After the United States seized Russia's Treasury bond deposits in 2022, annual central bank purchases of gold increased from about 500 tons to around 1,000 tons and have remained stable since. This surge in demand altered the supply-demand balance, but the price did not immediately reflect the change. The gold price rose by 2% in 2022, 13% in 2023, and 27% in 2024, with a parabolic increase not occurring until 2025. This was because the demand in the earlier years was met by holders willing to sell their gold. When the selling pressure from these suppliers was exhausted and demand remained strong, the price then surged sharply.
A similar situation currently exists with BTC and ETFs. Since the debut of ETFs in January 2024, their purchase volume has already exceeded 100% of the new BTC supply. The price has not yet entered a parabolic phase because existing holders are willing to sell. However, if ETF demand continues, the selling pressure from current holders will eventually be exhausted.