The price of Bitcoin (BTC) surged to approximately $90,000, reaching a new all-time high (ATH) and reigniting enthusiasm in the global cryptocurrency market.
Unlike previous rallies, which were primarily driven by retail investors and FOMO (Fear of Missing Out), this latest surge has been largely fueled by steady institutional capital inflows through U.S.-approved spot Bitcoin Exchange-Traded Funds (ETFs).
Institutional Capital via ETFs Reshapes the Market Landscape
Following the U.S. Securities and Exchange Commission’s (SEC) approval of the first spot Bitcoin ETFs earlier this year, the market has undergone a significant structural transformation.
As of the end of October, over $7 billion in net inflows had been recorded across major ETF products, including BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity’s Wise Origin Bitcoin Fund, with inflows continuing to rise week by week. With regulatory approval lending credibility, ETFs have opened a new, streamlined path for institutional investors to access Bitcoin within traditional financial systems.
Consequently, pension funds, university endowments, and asset management firms have gradually begun adding Bitcoin to their portfolios. Cathie Wood of ARK Invest commented, “ETF approval has fundamentally changed Bitcoin’s investment accessibility. Over the next five years, Bitcoin’s price will likely reach levels unimaginable today.”
Growing Spot Demand vs. Declining Supply: Structural Bullish Pressure
Alongside institutional inflows, structural factors within the Bitcoin network are further reinforcing bullish momentum. Following Bitcoin’s halving event in April 2024, the amount of newly mined BTC has been cut in half, while the proportion of long-term holders (LTHs) has reached an all-time high.
Analysts point out that under these supply-constrained conditions, the continuous influx of new demand via ETFs is exerting structural upward pressure on prices. According to data from Glassnode, approximately 78% of all circulating Bitcoin has not moved in over six months, indicating an intensified “supply lock-up” phenomenon.
Broader Global Asset Reallocation Underway
The strength of Bitcoin’s rally is not confined to the crypto market alone. Factors such as rising U.S. Treasury yields, growing geopolitical instability, and concerns over dollar weakness have led to a broader demand for portfolio diversification. As a result, Bitcoin, alongside gold, is increasingly being adopted as an “alternative safe haven” asset. Goldman Sachs recently reported that approximately 20% of major institutional investors are considering allocating a portion of their portfolios to digital assets, including Bitcoin, within the next 12 months.
BlockFin’s Perspective: A Structural, Institution-Driven Bull Market
A representative from the Research of global cryptocurrency exchange BlockFin provided the following assessment of the current Bitcoin rally that “This Bitcoin uptrend is fundamentally different from previous retail-driven bubbles. Institutional-led capital inflows, spot-based ETF trading, and structural changes in supply dynamics are collectively shaping a long-term, fundamentally supported bull market.” With macroeconomic conditions evolving and institutional adoption accelerating, Bitcoin appears to be entering a new era—one defined less by hype and more by structural transformation.
About BlockFin
BlockFin is a next-generation cryptocurrency exchange specializing in spot and futures trading, offering an intuitive interface and powerful trading features that make it easy for anyone to get started. With over 350 USDT-M perpetual pairs, spot trading, copy trading, unified account management, and advanced sub-account solutions, BlockFin provides an optimized environment for everyone from beginners to professionals.
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