#BTCOutlook BTC Price Forecast: Can ETF Demand Push Bitcoin Beyond $100K?

Key Points:

BTC closes below $98K as Fed's rate cut, rate path outlook, and ETF outflows pressure demand.

BlackRock’s IBIT anchors BTC ETF inflows, but net outflows on Friday signal investor caution amid Fed rate concerns.

Bitcoin price outlook tied to ETF flows, Fed signals, and potential SBR progress, with $120K highs in sight.

BTC Hovers Below $98k After the Bruising Fed Projections

On Saturday, December 21, BTC declined by 0.63%, reversing Friday’s 0.43% gain to close at $97,505. BTC fell short of $100k for the second successive session, reflecting investor caution.

ETF Inflows Support Market Sentiment but Raise Questions

The US BTC-spot ETF market extended its inflow streak to three weeks in the week ending December 20, with net inflows of $457 million. However, back-to-back daily outflows weighed on BTC demand as investors reacted to Wednesday’s Fed rate cut and projections.

According to Farside Investors:

iShares Bitcoin Trust (IBIT) reported net inflows of $1,447 million in the week ending December 20.

However, Fidelity Wise Origin Bitcoin Fund (FBTC) saw net outflows of $293.

Grayscale Bitcoin Trust (GBTC) had net outflows of $248 million.

Grayscale Bitcoin Mini Trust (BTC) and ARK 21Shares Bitcoin ETF (ARKB) also registered sizeable outflows.

While BlackRock’s (BLK) IBIT remains a market anchor, Friday’s outflows, the first since November 6, caused concern.

On Wednesday, the Fed cut rates but signaled fewer than-expected 2025 rate cuts, impacting demand for riskier assets, including crypto.

Will US Crypto-Spot ETF Launches Boost BTC Demand?

On Friday, the SEC approved BTC/ETH-hybrid-spot ETFs, introducing products with an 80-20 weighting between BTC and ETH. ETF Store President Nate Geraci announced the approval, saying,

“SEC has *approved* both the Hashdex Nasdaq Crypto Index US ETF & Franklin Crypto Index ETF… Will initially hold both BTC & ETH.”

“Will be interesting to see if BlackRock or others attempt to piggyback on this & launch similar ETFs...