Bitcoin prices remained firm above the $66,000 support level at writing on October 25. Despite the rise in confidence, the coin is still heading below the psychological round of $70,000. It has yet to clear the sellers in early October.
Demand for spot Bitcoin ETFs rises to 6-month high
However, given the emerging spot Bitcoin ETF trends, this is about to change. Latest analysis CryptoQuant’s Ki Young Ju on October 25 shows that demand for cryptocurrency derivatives products has increased over the past 30 days.
The rally has pushed demand for spot bitcoin ETFs in the US to a six-month high, attracting more than 64,900 BTC in net inflows.
Net flows, which take into account total inflows and outflows over the test period, can be used to measure institutional interest. The higher it goes, specifically coupled with the expansion of flows, it means more institutions are exposed to digital gold. The more institutional interest there is, the more Bitcoin is likely to rise.
Soso value data He appears US exporters collectively manage more than $66 billion. On October 24, investors purchased over $188 million worth of Bitcoin through issuers. To date, BlackRock, through IBIT, is the largest issuer, controlling more than $27 billion in BTC.
Over the past few months, Grayscale’s GBTC has seen massive outflows. On October 24, more than $7 million worth of Bitcoin was recovered from GBTC.
Will Institutions Push Bitcoin Above $70K?
There are high hopes that the approval of spot Bitcoin ETFs in the US has paved the way for institutions to raise prices. Before that, most found exposure to Bitcoin via approved trusts, some of which were offered by Grayscale.
Meanwhile, some institutions have bought MicroStrategy shares as their performance mirrors Bitcoin, given the public company’s heavy investment in the digital asset.
according to Bitcoin TreasuriesMicroStrategy owns more than 250,000 bitcoins, the largest amount of any public company in the United States and worldwide. Over the years since their strategy of regularly staking BTC, their stock, MSTR, has outperformed the best US stocks and indices.
Only time will tell if BTC bulls have what it takes to break above the $70,000 level. The round number indicates September highs. If Bitcoin builds on the rejection of the October 24 lows, it may find the momentum needed to set a short-term course.
A strong close above this psychological resistance line paves the way for a retest of the $72,000 level and all-time highs.
Featured image from Canva, chart from TradingView
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