Bitcoin prices remain stable above the $66,000 support level as of October 25. While investor sentiment is optimistic, the cryptocurrency continues to trade below the key psychological threshold of $70,000, with sellers still active since early October.
Surge in Demand for Spot Bitcoin ETFs Reaches 6-Month Peak
However, observing the current trends in spot Bitcoin ETFs, a shift may be imminent. The recent analysis by Ki Young Ju of CryptoQuant on October 25 indicates a notable increase in demand for these cryptocurrency derivative products over the past month.
This surge has propelled demand for spot Bitcoin ETFs in the United States to a six-month high, with over 64,900 BTC in net inflows.
Net flows, which take into account total inflows and outflows during the analysis period, serve as a gauge of institutional interest. An increase in these flows, especially alongside growing inflows, indicates heightened exposure by institutions to the digital currency. A rise in institutional interest enhances the likelihood of BTC prices surging.
Soso Value data demonstrates that issuers in the United States collectively manage over $66 billion. On October 24, investors purchased more than $188 million in BTC via these issuers. To date, BlackRock, through its IBIT, is the leading issuer, managing over $27 billion in BTC.
In recent months, Grayscale’s GBTC has experienced significant outflows. On October 24, over $7 million of BTC were withdrawn from GBTC.
Can Institutions Propel BTC Past $70,000?
There are strong expectations that the approval of spot Bitcoin ETFs in the United States will enable institutions to influence price movements. Prior to this, many institutions accessed BTC through approved Trusts, some managed by Grayscale.
At the same time, certain institutions have began investing in MicroStrategy stocks, as their performance closely mirrors BTC trends, given the company’s substantial investment in the cryptocurrency.
As reported by Bitcoin Treasuries, MicroStrategy holds more than 250,000 BTC, the largest amount owned by any public company in both the U.S. and globally. Since adopting their strategy of consistently accumulating BTC, their stock, MSTR, has outperformed leading stocks and indices in the U.S.
Only time will reveal if BTC bulls possess the capability to push prices above $70,000. This pivotal level aligns with the highs from September. If Bitcoin can build momentum following its rejection of lower prices on October 24, it may establish the necessary strength to dictate its short-term trajectory.
A decisive close above this key resistance level could set the stage for a retest of $72,000 and potential all-time highs.
Feature image from Canva, chart from TradingView
