Table of Contents
ToggleKey Takeaways
- Unprecedented Bitcoin ETF Demand: U.S. spot Bitcoin ETFs purchased 51,500 BTC in December 2024, nearly triple the amount of Bitcoin mined that month.
- Supply-Demand Imbalance: With only 13,850 BTC mined in December, ETF-driven demand outpaced supply by 272%, driving Bitcoin’s price resurgence.
- Record-High Bitcoin Price: Bitcoin hit an all-time high of $108,135 in December 2024, fueled by strong retail and institutional inflows into ETFs.
- January 2025 ETF Inflows Surge: Over $1.9 billion in ETF inflows were recorded within the first week of January, highlighting sustained investor interest.
- Bullish Predictions for 2025: Analysts forecast Bitcoin prices reaching $180K to $200K, supported by growing institutional adoption and ETF participation.
Read more: Buy Bitcoin in India
Bitcoin price has entered 2025 with a bang, climbing back above the $100,000 mark. This milestone, achieved in early January, comes on the heels of unprecedented demand from spot Bitcoin exchange-traded funds (ETFs), which have emerged as a dominant force in the crypto market.
ETFs Drive Bitcoin Demand to Record Levels
Spot Bitcoin ETFs in the United States accumulated approximately 51,500 BTC in December 2024, nearly triple the 13,850 BTC mined during the same period, according to data from Apollo and Blockchain.com. This staggering demand—272% more than the available supply—underscores a significant imbalance in the market.
Cumulative BTC inflows for US spot ETFs | Source: Apollo/CoinTelegraph
Jesse Myers, co-founder of Onramp Bitcoin, commented on the phenomenon, noting, “There’s not enough supply available at current prices to satisfy demand.” This mismatch is further amplified by Bitcoin’s limited supply dynamics, with the market experiencing a strong uptick following Donald Trump’s presidential election victory in November 2024.
Bitcoin Price Hits New Highs
The surging demand for Bitcoin ETFs propelled the king coin to an all-time high of $108,135 on December 17, 2024, as reported by CoinGecko. This price resurgence has positioned Bitcoin as a key investment vehicle for retail and institutional investors alike.
Analysts predict that the heightened ETF activity will have lasting effects. On January 6, 2025, crypto researcher Vivek highlighted a “supply shock” as BTC exchange balances hit new lows, signaling reduced availability on trading platforms.
Read more: Bitcoin price prediction
Major Mining Activity Falls Short
Despite robust mining efforts, production remains unable to meet demand. Major Bitcoin mining companies reported their December production figures:
- MARA Holdings led the pack with 9,457 BTC mined.
- Riot mined 516 BTC, marking a 4% increase compared to November.
- Cleanspark contributed 668 BTC, while Core Scientific produced 291 BTC.
- Smaller players like Terawulf and BitFuFu mined 158 and 111 BTC, respectively.
These combined efforts pale in comparison to the soaring demand from ETFs.
ETF Inflows Surge in January
The new year has already witnessed remarkable ETF inflows. On January 3 and January 6, U.S.-based spot Bitcoin ETFs saw net inflows of $1.9 billion. Fidelity Wise Origin Bitcoin Fund led the way with $370.2 million in inflows, followed by BlackRock’s iShares Bitcoin ETF and ARK 21Shares Bitcoin ETF with $209 million and $153 million, respectively.
Grayscale, Bitwise, and VanEck also reported significant inflows during this period, showcasing the diverse interest in Bitcoin investment products.
A Bullish Outlook for 2025
The renewed interest in Bitcoin ETFs has driven their total net inflows to $36.9 billion since their launch in early 2024. BlackRock’s iShares Bitcoin ETF leads the pack with $37.4 billion in net inflows, solidifying its position as a market leader.
Analysts expect institutional interest in Bitcoin to grow further in 2025, with more clearinghouses and trading platforms supporting ETF products. This optimism fuels bullish predictions, with Bitwise forecasting Bitcoin to reach $200,000 and VanEck projecting a peak of $180,000 by the end of 2025.
Read more: Crypto market bull run
Conclusion
Bitcoin’s return to the $100,000 threshold is a testament to its resilience and the growing confidence in regulated investment vehicles like ETFs. As demand outpaces supply, the crypto market appears poised for another groundbreaking year, with Bitcoin leading the charge. Investors and analysts alike are eagerly watching as the world’s largest crypto solidifies its place in the global financial landscape.
Source: CoinTelegraph
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