- Despite increasing demand from both retail and institutional investors, Bitcoin struggles to surpass the $67,000 mark.
- Retail demand for Bitcoin has surged by 13% in the past 30 days, but the price remains stagnant.
- Institutional interest, particularly through Bitcoin ETFs, continues to rise, though allocations are still relatively small.
- Analysts suggest that Bitcoin needs a weekly close above $66,400 to confirm a potential breakout.
Growing Retail Demand for Bitcoin
In recent months, Bitcoin (BTC) has seen a notable increase in demand from retail investors. Despite this surge, Bitcoin’s price has failed to exceed $67,000, remaining stubbornly below this key level. Retail investors have been buying Bitcoin in significant amounts, leading to a demand level last seen when Bitcoin reached its all-time high of $73,600 in March 2024.
According to on-chain data from CryptoQuant, retail demand increased by approximately 13% over the last 30 days. This trend mirrors the behavior observed earlier in the year when Bitcoin approached its previous high. However, despite this growing interest, Bitcoin’s price has declined by 1.5% over the past 24 hours, standing at $66,432.
Institutional Involvement Through Bitcoin ETFs
Institutional investors are also playing a significant role in driving demand for Bitcoin, particularly through the use of Bitcoin ETFs (Exchange-Traded Funds). U.S.-based Bitcoin ETFs have seen growing institutional ownership, sparking optimism for Bitcoin’s future price movement.
Ki Young Ju, the CEO of CryptoQuant, highlighted that institutions now own around 20% of U.S. Bitcoin ETFs. This accounts for nearly 193,000 BTC, held by various asset management firms. Since the introduction of Bitcoin ETFs, over 1,100 new institutional investors have entered the market, signaling a broader adoption of Bitcoin among financial institutions.
Despite this growing participation, Vuqar Usizade, COO of Bitget, emphasized that these institutional investors still allocate only a small portion of their portfolios to Bitcoin. Usizade suggested that while the outlook for Bitcoin ETFs is promising, institutional adoption remains cautious. This conservative approach is typical when asset managers explore new technologies or assets like Bitcoin.
Bitcoin ETFs Experience Outflows
However, the excitement surrounding Bitcoin ETFs has been tempered by recent outflows. Data from Farside Investors reveals that Bitcoin ETFs saw net outflows starting on October 22, 2024, indicating that some investors are taking profits or reallocating their funds.
Spot Bitcoin ETF flows, measured in millions of U.S. dollars, show a trend of decreasing inflows, which has contributed to Bitcoin’s price stagnation. For Bitcoin to break out of its current price range, analysts believe it needs to close above $66,400 on a weekly basis.
Rect Capital, a prominent cryptocurrency analyst, stated that Bitcoin is currently undergoing a re-test of a key technical level. A successful close above this level would signal the potential for a price breakout and renewed upward momentum.
Cautious Optimism Amid Stagnation
Despite increasing interest from both retail and institutional investors, Bitcoin’s price remains in a consolidation phase below the critical $67,000 level. While retail demand has surged, and institutional ownership through Bitcoin ETFs has grown, the relatively small allocations from institutional investors have limited Bitcoin’s ability to achieve a significant breakout. Analysts remain cautiously optimistic, suggesting that a weekly close above $66,400 could trigger a renewed rally. In the meantime, Bitcoin remains in a holding pattern, with investors waiting for a clear signal of the next move.
