Bitwise: If ETF demand continues for a long time, BTC prices will enter a parabolic growth phase

Bitwise Chief Information Officer Matt Hougan posted on X platform that if ETF demand continues long-term, the price of BTC will enter a parabolic growth phase.

Matt Hougan pointed out, using the example of gold prices rising 65% in 2025, that the prices of both gold and BTC are determined by supply and demand. After the U.S. confiscated Russian bond deposits in 2022, central banks around the world increased their annual purchases of gold from about 500 tons to around 1,000 tons, and this level has remained stable. This demand has changed the supply-demand balance, but it has not immediately reflected in the price.

Gold prices rose 2% in 2022, 13% in 2023, and 27% in 2024, before experiencing parabolic growth in 2025. This is because the demand in previous years was met by holders willing to sell gold, and when the selling pressure from sellers is exhausted and demand persists, prices will rise significantly. Currently, there is a similar situation with BTC and ETFs. Since the ETF debuted in January 2024, its purchase volume has exceeded 100% of the new supply of BTC. Due to existing holders being willing to sell, the price has not yet entered the parabolic phase. If ETF demand continues, the selling pressure from existing sellers will eventually be exhausted.