Analysis suggests ETFs are now primary driver of BTC price

Exchange-traded funds (ETFs) have become the main factor determining the price movement of BTC, according to an analysis reported by CoinDesk. Jim Ferraioli, director of cryptocurrency research and strategy at Charles Schwab, stated that on-chain activity has consistently declined since BTC reached a peak last October, making ETF fund inflows the primary price driver. He noted that amid low transaction fees, selling from long-term holders, and exchange balances hitting new lows, the market is moving entirely in line with ETF flows. Ferraioli added that truly institutional investors have not yet fully entered the market and that relevant legislation could provide sustainable momentum for a BTC rally. Separately, Gerry O'Shea, Head of Global Market Insights at crypto asset manager Hashdex, predicted that catalysts to support a BTC price increase could emerge in the coming weeks, citing potential changes in U.S. monetary policy or progress in crypto legislation as examples.