U.S. Spot Bitcoin Exchange-Traded Funds (ETFs) Rapidly Accumulate BTC Tokens
U.S. spot Bitcoin exchange-traded funds (ETFs) are rapidly accumulating BTC tokens, outpacing miners’ production ability. Last week, these ETFs collected 18,644 BTC against the mining supply of 3,150 BTC, marking a sixfold increase in institutional demand. This shift is causing a pressure-cooker effect on Bitcoin’s price, with more coins being taken off the market and held rather than traded.
The Impact of the April 2024 Halving
The April 2024 halving reduced the number of new Bitcoins created daily to around 450 BTC. As ETFs absorb more coins than miners can supply, the scarcity intensifies. One prominent fund, BlackRock’s iShares Bitcoin Trust (IBIT), played a major role in driving $1.8 billion in inflows over five days, underscoring growing institutional interest.
Despite these significant inflows, Bitcoin’s price has remained stable, hovering around $64,000. Analysts expect this equilibrium will eventually give way to upward price pressure as demand increases and supply tightens. The future of Bitcoin’s price will likely depend on how much more institutional investment flows into these ETFs and whether platform restrictions on Bitcoin ETFs are eased, allowing more retail and institutional demand to enter the market.
Bitcoin Price Forecast: A $150K Peak With a Potential Crash
According to technical analyst Peter Brandt, Bitcoin’s price could reach between $125,000 and $150,000 by late summer 2025. However, Brandt warns that a 50% market correction could follow once Bitcoin hits this peak. His prediction is based on Bitcoin’s need to reclaim its parabolic trendline to maintain the rally. If this trend continues, Bitcoin could rise through the third quarter of 2025.
While Brandt’s cautious outlook is gaining attention, others, like Robert Kiyosaki, author of Rich Dad Poor Dad, are more optimistic. Kiyosaki predicts that Bitcoin could surpass $200,000 by 2025, fueled by institutional investment and increasing adoption.