- U.S. Bitcoin ETFs saw $1.38B in inflows this week, led by BlackRock with $1.12B, boosting institutional Bitcoin holdings to $78.5B.
- Over 24K Bitcoin, worth $1.8B, was withdrawn from exchanges, tightening supply as institutions and retail investors accumulate more BTC.
- Bitcoin’s price, fueled by rising institutional demand and shrinking supply, could reach six figures by early 2025, analysts predict.
Institutional interest in Bitcoin has surged this week, led by record-breaking inflows into U.S. spot Bitcoin ETFs. According to recent data, American ETF issuers registered a net cash inflow of $1.38 billion on Thursday, marking the highest inflow since Bitcoin ETFs were approved in the United States.
Notably, BlackRock’s IBIT alone attracted a substantial portion of this investment, reporting $1.12 billion in new cash inflows. This latest wave of investment has increased IBIT’s holdings to approximately $34.2 billion, a significant figure that underscores the appetite for Bitcoin among institutional investors.
In addition, Fidelity’s FBTC followed closely, with a reported $190 million in new inflows, pushing its total Bitcoin holdings to $14.58 billion. In total, U.S. spot Bitcoin ETFs currently hold about $78.5 billion worth of Bitcoin, highlighting a growing commitment by institutional players to accumulate the asset. Consequently, analysts expect this mounting institutional interest to drive further price momentum for Bitcoin, which recently set a new all-time high above $76,000.
Bitcoin Supply Shortage Worsens Amid Institutional Accumulation
Consequently, the intensified accumulation by institutional investors has contributed to a significant reduction in the Bitcoin supply available on exchanges. Data from recent days shows over 24,000 Bitcoin, worth approximately $1.8 billion, have been withdrawn from various cryptocurrency exchanges. This shift reflects a growing trend among institutions and retail traders alike to hold onto their assets, further tightening the available supply of Bitcoin.
As the supply diminishes, experts anticipate that demand pressure may lead to additional price gains. Many institutional investors view Bitcoin as a valuable hedge in uncertain economic times, especially with recent signals from U.S. officials indicating potential plans for national accumulation.
Furthermore, with the U.S. government reportedly considering the purchase of up to one million Bitcoin within the next five years, some analysts predict a further demand surge and potential price escalation for the cryptocurrency.
Price Predictions on the Rise as Bitcoin Nears Six-Figure Milestone
Moreover, in light of these developments, Bitcoin’s price has shown robust performance, with market analysts now projecting further gains. The convergence of heightened demand, dwindling supply, and sustained institutional interest has set the stage for Bitcoin’s price to potentially reach six-figure levels. Some forecasts suggest that this milestone could be attained by early 2025 if the current demand trend continues.
Therefore, while the potential U.S. government acquisition of Bitcoin could be a factor in future price movements, the present influx from private institutional investors is already influencing the market. The sustained demand from ETFs and institutional players underscores Bitcoin’s position as a mainstream financial asset, cementing its role in diversified portfolios.
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