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As Bitcoin (BTC), the largest cryptocurrency by market capitalization, inches closer to its all-time high of $73,700 reached in March, the US spot Bitcoin ETF market has once again emerged as a key driver of the cryptocurrency’s recent price rise .
On Tuesday, the total trading volume of Bitcoin ETFs exceeded $3 billion, corresponds to the price of Bitcoin briefly above the important $73,000 mark for the first time over 7 months.
Bitcoin ETF Market Set To Exceed 1 Million BTC Holdings Soon
Notably, crypto investor BigRig has seen a dramatic increase in Bitcoin ETF purchases over the past two weeks. reporting $2.673 billion in revenue as of October 16.
This accounted for a whopping 11.8% of total ETF revenue during this period, suggesting strong interest from institutional and retail investors. BigRig also pointed out that, prior to Tuesday’s trading volume, this period represents the best day for ETF entry.
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Bloomberg ETF analyst Eric Balchunas added to the optimistic narrative by he said that US ETFs are on track to hold one million Bitcoins next Wednesday, surpassing the holdings of Satoshi Nakamoto, the enigmatic creator of Bitcoin, in mid-December with an average addition of about 17,000 BTC per week.
However, Balchunas also warned that market volatility could affect these projections. “Anything can happen,” he said, referring to the possibility of a sudden selloff that could delay the timeline.
Conversely, if prices continue to rise again political factorsas Trump’s victory in the upcoming election, contributes to the increase in market enthusiasm, the expert believes that this influx of new investors can accelerate the speed of Bitcoin’s rise to new heights.
Whale Accumulation Spurs Hope
Despite increasing activity in the Bitcoin ETF market, the price of the largest cryptocurrency has recently fallen world classreturns around $72,250 at the time of writing.
However, there are positive signs for Bitcoin bulls. The cryptocurrency has been rallying above key support levels, with strong support around the $66,000 mark.
This support effectively prevented any major decline in the previous week and contributed to the ongoing rally. However, it can be significant bullish indicator it could be a continuous consolidation above the $70,000 level of the bulls, which may indicate the strength of the current movement.
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Market expert Miles Deutscher has been vocal about his view of Bitcoin, especially in the last months of the year. He recently he revealed key trend: whales—Bitcoin’s biggest owners—are hoarding the cryptocurrency at an “unprecedented pace.”
These comments suggest that institutional demand for Bitcoin is currently outpacing retail interest, a change that could impact large price movements upwards in the near future.
Deutscher further highlighted that Bitcoin exchanges have reached record lows. This means that the amount of Bitcoin available for trading has decreased, indicating a tight supply.
Featured image from DALL-E, chart from TradingView.com
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