In December 2024, spot Bitcoin exchange-traded funds (ETFs) in the United States saw unprecedented demand, accumulating approximately 51,500 BTC. This surge was notable as it far exceeded the nearly 14,000 coins generated by Bitcoin miners during the same period. The data reflects an impressive ratio, with ETF demand outpacing production by around 272%.
The price of Bitcoin experienced significant upward momentum, peaking at an all-time high of $108,135 on December 17. Analysts have pointed out that the soaring prices are indicative of a supply-demand imbalance. With only 13,850 new coins added to the circulating supply in December, the existing market supply could not meet the increased demand driven largely by the influx of investments into spot Bitcoin ETFs.
As January began, inflows into Bitcoin ETFs continued to gain traction. On January 3, over $900 million was invested into these funds, with projections suggesting that January 6 could bring nearly $1 billion more in investments. This pattern follows a broader narrative in the cryptocurrency market, signaling a potential supply shock as exchange balances for Bitcoin are falling to unprecedented lows.
In terms of mining operations, several key players released their production data for December. Marathon Digital led the pack, reporting a total of 9,457 BTC mined for the month. Riot recorded a modest increase, mining 516 BTC, while Cleanspark produced 668 BTC. Other companies, such as Core Scientific and Bitfarms, reported outputs of 291 BTC and 211 BTC, respectively. Terawulf and the cloud mining service BitFuFu also reported production numbers of 158 BTC and 111 BTC, highlighting the diverse landscape of Bitcoin mining amidst rising market demand.
