Bitcoin‘s recent performance mirrors trends observed in 2016 and 2020; however, since July, the market has encountered a plateau in demand. Analysts from CryptoQuant are currently assessing Bitcoin’s market behavior to forecast its future trajectory.
How Do US Spot ETFs Affect Bitcoin Demand?
Analysts indicate that Bitcoin demand has stagnated since July, contrasting sharply with the surge seen in April. A rebound is anticipated in the fourth quarter, largely attributed to the influence of US exchange-traded funds (ETFs). Notably, BlackRock’s IBIT ETF has recently invested $612 million over the past week, acquiring approximately 10,000 BTC.
What’s the Total Value of Bitcoin Portfolios?
Recent statistics reveal that BlackRock’s IBIT ETF holds around 367,000 Bitcoins, representing about 1.7% of the total supply of 21 million BTC. Together with eleven other US funds, these entities control a combined 926,638 Bitcoins, valued at approximately $56.7 billion. However, since the initiation of new funds in early 2024, Grayscale’s GBTC has seen over $20 billion in outflows.
CryptoQuant’s findings suggest that a recovery in demand this quarter could propel Bitcoin to between $85,000 and $100,000. Yet, long-term Bitcoin analyst Willy Woo emphasizes that reaching new all-time highs will require patience, and a shift from bearish to neutral sentiment is underway. He believes that October will show less volatility, forecasting a more promising outlook for November and December.
- Bitcoin demand has stalled since July.
- US ETFs, especially BlackRock’s IBIT, are crucial for demand recovery.
- BlackRock’s ETF holds a significant share of Bitcoin, indicating institutional interest.
- Predictions suggest potential price increases in the coming months.
Current market conditions present both challenges and opportunities for Bitcoin investors. As demand dynamics shift and the influence of ETFs becomes clearer, stakeholders must remain vigilant to navigate this evolving landscape effectively.