Institutional buying of Bitcoin remains robust despite a recent $7,000 price decline, evidenced by significant inflows into US spot Bitcoin ETFs.
Spot Bitcoin ETFs showed resilience during the downturn, adding over 7,500 BTC on Monday followed by another 3,400 BTC net inflow on Tuesday. This accumulation during a correction contrasts with historical outflow patterns, suggesting stronger underlying market stability.
Market analysts project significant upside potential stemming from this institutional activity. Timothy Peterson forecasts Bitcoin could reach $130,000-$135,000 within the next six months. This prediction hinges on sustained ETF demand vastly outpacing Bitcoin’s new supply creation, potentially creating a deficit of 343,000 BTC.
Bitcoin’s fixed supply and recent halving event magnify the impact of institutional acquisition, tightening the available supply for other market participants. The continued accumulation by large-scale investors highlights a fundamental shift in market dynamics, further cementing Bitcoin’s position as a strategic institutional asset amidst ongoing volatility.