Bitcoin’s current trends mirror its successful periods in 2016 and 2020. However, demand has been stagnant since July. CryptoQuant analysts have analyzed Bitcoin’s performance during this period and made predictions for the future.

US Spot ETFs Drive Demand

According to analysts, the growth in Bitcoin demand has stopped since July. Compared to the increase in demand in April, demand is expected to recover in the fourth quarter. Exchange-traded funds (ETFs), especially in the US, play an important role in increasing Bitcoin demand. BlackRock’s IBIT ETF added about 10,000 BTC by investing $612 million in the last seven trading days.

Total $56 Billion Bitcoin Portfolio

The latest data shows that BlackRock’s IBIT ETF holds 367,000 Bitcoin, or about 1.7% of the total 21 million BTC. The 11 US funds combined hold 926,638 Bitcoin, worth $56.7 billion. Since the new funds launch in early 2024, Grayscale’s GBTC has seen over $20 billion in outflows.

Willy Woo: It Will Take Time to Reach New All-Time High

According to CryptoQuant’s analysis, a recovery in Bitcoin demand could lead to BTC reaching $85,000-$100,000 this quarter. However, long-term observer Willy Woo noted that it will take time for BTC to reach new all-time highs.

"While the structural medium-term transition is from low to neutral levels, we expect a retroactive rise. It will take time to reach ATH. In the short term, it would be appropriate to wait 1-3 weeks. If Uptober does not occur, October will be flat and a long-term positive outlook will continue in November-December," Woo said.

Outlook for the Future of Bitcoin

The current state of the Bitcoin market, considering both demand dynamics and the role of ETFs, carries a balanced growth potential in the coming period. Experts expect that the short-term volatility may be limited, but positive trends will continue in the long term.

For Bitcoin investors, current market conditions include dynamics that need to be monitored carefully. Investment opportunities offered by ETFs and changes in demand stand out as important factors in determining Bitcoin's value and place in the market.

  • Bitcoin demand is supported by ETFs in the US.

  • Grayscale’s GBTC has seen major breakouts.

  • Analyst Willy Woo is optimistic about the long term.