Behind Bitcoin’s $125K Rally – Untold Stories Of Institutional Appetite And Supply Starvation
Bitcoin reached a new record high of $125,689 Sunday, driven by the worst exchange supply shortage in seven years and the second-largest weekly ETF inflow since January 2024.
The rally reflects fundamental market forces rather than speculation. Professional traders report difficulty finding Bitcoin to buy, while institutional money continues flowing into exchange-traded funds at record rates. This supply-demand imbalance has created conditions that could push prices toward $135,000 in coming weeks.
ETF Flows Accelerate
U.S. spot Bitcoin ETFs attracted $3.24 billion during the first week of October, reversing $902 million in September outflows. BlackRock’s iShares Bitcoin Trust (IBIT) captured $1.78 billion of those flows, bringing its total assets to $96.2 billion. This places IBIT among the top 20 ETFs globally by assets under management.
Fidelity’s FBTC added $692 million, while smaller funds like ARK 21Shares and Bitwise contributed $254 million and $212 million respectively.
The pace of accumulation matters. At current rates, fourth-quarter ETF flows could remove more than 100,000 BTC from circulation—double the new Bitcoin created through mining during the same period. “ETF buying is accelerating while long-term holders sell less, helping Bitcoin build support near key technical levels,” said one market analyst tracking the flows.
Exchange Balances Hit Historic Low
While ETF headlines dominate, a quieter crisis unfolds on cryptocurrency exchanges. Bitcoin balances on centralized platforms dropped to 2.83 million BTC, the lowest level since June 2019 when Bitcoin traded around $8,000. CryptoQuant reports an even lower figure: 2.45 million BTC, representing a seven-year low.
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