Bitcoin ETFs Set New Record With $65B AUM: Will BTC Price Hit $75k Before US Fed Meeting?

Bitcoin Price Analysis:

Bitcoin price opened trading above $68,400 on Sat Oct 19, setting a new 80-day record, on-chain data shows rising institutional demand from BTC spot ETFs continues to support the bullish momentum. Could this propel BTC price to new all-time highs ahead of the next US Fed Meeting slated for November 7?

Bitcoin Price Posts 11.3% Weekly Gains Amid Rising Whale Demand

On October 19 2024, Bitcoin price opened trading above the $68,400 mark, its highest sine June 7. Notably, the current BTC rally has proved resilient to downward volatility having kept its intra-day corrections below 0.5% in each of the last 6 trading days.

The chart above shows that Bitcoin rose 11.36% within the weekly timeframe, moving from its opening price of $63,181 on Sunday to cross above the $68,976 level on Friday Oct 18.

At the time of writing on Oct 19, BTC is consolidating above the $68,180, keep its intra-day correction around 0.36%. This strong support above the $68,000 levels shows that BTC continues to find buyers, while current holders remain reluctant to sell, in anticipation of further upside.

ETFs Set New Record With $65Billion AUM in 10-Months

While Bitcoin’s price rose 11% within the weekly timeframe, on-chain data reveals that the rally was largely fueled by significant inflows into spot Bitcoin ETFs. Over the past week alone, these ETFs attracted more than $1.5 billion in fresh investments, helping Bitcoin hit new monthly peaks for three consecutive days.

Institutional and corporate investors have been actively buying into these ETFs, a trend that accelerated following the U.S. Federal Reserve’s rate cut on September 18. This influx of capital highlights the growing demand for regulated Bitcoin investment vehicles among traditional market participants.

The approval of Bitcoin spot ETFs by the U.S. Securities and Exchange Commission (SEC) in January 2024 marked a watershed moment for the crypto sector, allowing institutional investors to gain direct exposure to BTC within a regulated trading landscape.

According to data shared by Bloomberg’s senior ETF analyst, Eric Balchunas, on the platform X, these ETFs reached the $20 billion mark after accumulating more than $1.5 billion in inflows in just the past week.

Collectively, these Bitcoin ETFs now manage more than $65 billion in assets, having crossed the $20 billion inflow threshold in less than a year—a feat that Gold ETFs took more five years to accomplish, underscoring the rapid institutional adoption of Bitcoin as an asset class.

The chart above  shows that BlackRock’s iShares Bitcoin Trust (IBIT) leads the pack with $22.4 billion in inflows, followed by Fidelity’s FBTC, which has attracted $10.2 billion, and the ARK 21Shares Bitcoin ETF.

Institutional Demand Could Rise Further ahead of Fed Meeting

Having recorded $20 billion inflows within 10-months, future interest rate cuts could see institutional demand for BTC surge even further grow further.

The ETFs demand surge and BTC price gains experienced since the first Fed rate appears to have buoyed investor confidence outside of the US markets as well. Indicatively,  Metaplanet, a Japanese publicly traded company on the Tokyo Stock Exchange,  has adjusted its Bitcoin put options strategy, moving the strike price from $62,000 to $66,000.

This affirms that after spending billions of Yen or BTC spot purchases in the last 2 months, the Japanese company remains optimistic about the Bitcoin’s future price movements.

The firm’s transaction involved repurchasing 223 BTC put options with a $62,000 strike price, and selling the same number of put options at a $66,000 strike price. The firm’s nominal yield, as a result, rose by 2.65% to 13.4%.

Its new put option’s strike price would mean that if the price of Bitcoin drops below the $66,000 mark, it would be obligated to buy BTC at that price. It received a premium of 5.9095 BTC through the options strategy.

Metaplanet’s BTC strategy review on Oct 16, and Bitcoin ETFs $1.5 billion inflows last week confirms the narrative that major stakeholders and large investors are anticipating a more Bitcoin price gains ahead of the next US Fed meeting slated for Nov 7 2024.

If this market dynamics persist, Bitcoin price could potentially hit new global peaks above the $75,000 level in the weeks ahead.

BTC Price Forecast: $70k Breakout Could Mark Major Turning Point

At the time of writing, Bitcoin price has moved above the $68,000 level. Based on data observed in IntoTheBlock’s In/Out of the Money data, Bitcoin’s next critical resistance zone lies between $69,243 and $72,500.

Within that zone, over 994,000 addresses had acquired 630,100 BTC the last BTC price hit those level, suggesting a looming sell-wall ahead.

However, if Bitcoin can break above $72,500, this could signal the start of a fresh bullish phase, with the next major resistance zone being near the $75,000 mark, an all-time high territory.

This zone has been a strong psychological barrier in previous cycles, and breaching it would likely trigger further buying from both retail and institutional investors. On the downside, strong support levels sit around $66,000, where a 2.3 million BTC holders had acquired 4.3 million BTC, according to the  IntoTheBlock’s data.

Over the past week, this $66,000 support levels has proven reliable, keeping intra-day volatility capped below 0.5%.

Should Bitcoin establish a daily close above $72,500, the path towards $75,000 and potentially higher levels could materialize before the next Fed meeting on November 7.

The steady inflow of institutional money into Bitcoin ETFs, now exceeding $20 billion, continues to underpin the bullish narrative. A breakout above $72,500 would confirm the strength of this momentum, likely propelling BTC to test new all-time highs before the end of Q4 2024.