Bitcoin ’s price continues to struggle to break through the $70,000 level, despite a recent surge in spot Bitcoin exchange-traded funds (ETFs) that reached a significant milestone last week. On October 17, U.S.-based spot Bitcoin ETFs surpassed $20 billion in total net flows within just ten months of their introduction, a feat that took nearly five years for gold ETFs to achieve.
On October 21, Bitcoin reached a peak of $69,487, its highest level in nearly three months, before retracting to approximately $68,570 by 8:25 AM UTC. Analysts attribute the lackluster price movement partly to a delayed response to the ETF inflows, which may take time to reflect in Bitcoin ’s spot price.
The current market dynamics indicate that many cryptocurrency traders are viewing ETF inflows as a means to exit trades. This tendency, coupled with a heavy ask order book, suggests that significant inflows typically have a muted effect initially, followed by potential price reversal once buying interest from the spot market diminishes. For Bitcoin ’s price to breakout from its current range, a sustained uptick in interest is crucial.
Despite the impressive inflows into ETFs, especially the BlackRock and Fidelity funds, analysts highlight that immediate price impacts have often been minimal — even during days of significant inflows exceeding $500 million. In the past week alone, BlackRock’s iShares Bitcoin Trust ETF recorded inflows surpassing $1.17 billion.
In a positive development, Bitcoin closed the week above the psychologically important level of $69,000. This close may pave the way for a potential rally toward the previously established re-accumulation range above $71,000, marking the highest point since June 2024. Moreover, with the approval of the first Bitcoin ETF options by the Securities and Exchange Commission on October 18, there is anticipation of further positive momentum in ETF inflows going forward.
