Bitcoin stuck under $67K despite rising demand from retail, institutions

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As a seasoned researcher with over two decades of experience in the financial markets, I find myself intrigued by the current state of Bitcoin. The growing institutional and retail demand for this digital currency is undeniable, yet its price remains stubbornly below the coveted $70,000 mark. This situation reminds me of a game of cat and mouse – Bitcoin dances just out of reach, tantalizing us with its potential, only to retreat once more.

As a market analyst, I find myself observing that, despite a significant increase in both institutional and individual interest in Bitcoin, the price seems reluctant to pick up speed. This suggests a complex interplay of factors at play within the cryptocurrency market.

The interest in buying Bitcoin (BTC) at retail level reached its peak in more than half a year, last observed in March 2024, when the price of Bitcoin exceeded $73,600, setting a new record high.

Over the past thirty days, I’ve observed a substantial surge in retail demand for cryptocurrencies, as reported by the on-chain intelligence firm, CryptoQuant, in their recent Oct. 22 blog post.

“In the last 30 days, retail demand grew by about 13%, highlighting a scenario that was only seen in March, when we were close to the last historical high.”

Regardless of increased retail investment, Bitcoin’s value dropped by approximately 1.5% in the last 24 hours to reach a price of $66,432 at around 12:22 pm UTC on October 23, as per CryptoMoon’s data.

Despite a rising interest from institutions and individual investors in Bitcoin, the digital currency hasn’t managed to break through the $70,000 symbolic threshold since July 29.

Institutions own over 20% of US Bitcoin ETFs

The number of U.S. Bitcoin spot ETFs owned by institutions is increasing, which has led to increased enthusiasm among investors that the price of Bitcoin could grow as well.

Institutional ownership accounts for roughly 20% of Bitcoin ETFs listed in the United States, as per Form 13F filings with the Securities and Exchange Commission, as reported by Ki Young Ju, the CEO of CryptoQuant, in a recent blog post.

“Institutional ownership of U.S. #Bitcoin Spot ETFs is around 20%, with asset managers holding 193K BTC (per Form 13F filings).”

Approximately 1,179 additional financial institutions have jumped on board with Bitcoin investments over the past ten months following the debut of Bitcoin ETFs, according to Ju’s statement.

Continued institutional ETF adoption could significantly bolster Bitcoin’s price since institutions hold large amounts of capital that can move crypto markets. Bitcoin may need continued institutional adoption to reach new all-time highs.

Can ETF inflows nudge a weekly Bitcoin close above $66,400?

As an analyst, I observed a shift in Bitcoin ETF inflows turning negative on October 22, marking a reversal from the previous seven days where there were accumulated net positive inflows.

On October 22nd, the flow of investments into Bitcoin ETFs switched from positive to negative, marking a change after seven straight days of net increases in investment, as indicated by data from Farside Investors.

In order for a possible price breakout to be verified, the price of Bitcoin should end the week at a level higher than $66,400, as suggested by crypto analyst Rekt Capital in a recent post on October 23.

“The retest is underway. Bitcoin needs to weekly close above the channel top (black) for the retest to be successful (downside wicks in the meantime are permitted).”

For Bitcoin to end the week on an optimistic note, it might benefit from sustained inflow into Bitcoin ETFs. A month following their debut, US Bitcoin ETFs contributed roughly 75% of fresh Bitcoin investments, significantly contributing to its price surpassing $50,000.

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2024-10-23 16:05