Bitcoin ETFs See Record $3.38 Billion Inflows, VanEck Analysts Eye $180K Price Target

Bitcoin ETFs have experienced record-breaking demand, with a staggering $3.38 billion in weekly inflows, signaling growing investor interest as the cryptocurrency approaches new price milestones. This surge in capital comes at a time when Bitcoin continues its rally, nearing the coveted $100,000 mark, and analysts predict even greater price potential in the coming months.

Record Inflows and Market Reactions

The most significant inflows occurred on November 21, when $1 billion was poured into Bitcoin Spot ETFs. This event coincided with the news that Gary Gensler, the chair of the U.S. Securities and Exchange Commission (SEC), would be stepping down on January 20, ending his tenure marked by a harsh stance on crypto regulation. Gensler’s exit is seen as a positive signal for the crypto industry, particularly as a more crypto-friendly regulatory environment could emerge under President-elect Donald Trump.

In the wake of this announcement, Bitcoin surged to a new all-time high of $99,800, just shy of breaking the $100,000 threshold. However, despite this peak, inflows into the 12 Bitcoin ETFs offering remained strong, with total weekly inflows hitting $3.38 billion—the highest on record.

Among the biggest recipients of these inflows, BlackRock’s IBIT ETF led the pack with $513.2 million, continuing its impressive streak of 12 consecutive days of inflows. Other funds also saw substantial inflows, such as Fidelity’s FBTC with $21.7 million, Valkyrie’s BRRR at $6.19 million, and Grayscale’s Bitcoin mini trust bringing in $5.72 million. However, Grayscale’s GBTC—which carries higher fees—was the only offering to experience outflows, losing $67.05 million.

Despite a slight dip in inflows toward the end of the week, market experts believe the overall demand for Bitcoin ETF products remains robust, with Bitcoin poised for further upside.

Supply Shock and Geopolitical Uncertainty Driving Demand

Kadan Stadelmann, an early Bitcoin investor and Chief Technology Officer at Komodo, attributes the surge in ETF demand to the 2024 Bitcoin halving and geopolitical uncertainties. The halving, which reduces the rate at which new Bitcoin is minted, is expected to create a supply shock, driving up the asset’s price due to decreased availability. Additionally, global geopolitical tensions are prompting investors to seek Bitcoin as a safe-haven asset to hedge against traditional market risks.

Georgii Verbitskii, the founder of TYMIO, also foresees even greater momentum for Bitcoin once the price surpasses $100,000. He believes this milestone will capture mainstream media attention, drawing new traders and investors into the market, potentially fueling the next phase of the rally.

$100K and Beyond: Analysts Predict Major Upside

As of the latest data, Bitcoin was just 1.47% shy of crossing the $100,000 threshold, a milestone many analysts believe will be achieved before the end of 2024. But the excitement doesn’t stop there. Experts like VanEck analysts Nathan Frankovitz and Matthew Sigel predict that Bitcoin could reach $180,000 within the next 18 months, citing a pattern that mirrors previous rallies.

Their analysis suggests that Bitcoin’s current rally is following a trajectory similar to the one in 2020, when Bitcoin doubled in price between the U.S. presidential election and year-end, and then surged an additional 137% in 2021. As the next phase of the bull market begins, the lack of technical resistance gives analysts confidence that Bitcoin could continue rising rapidly.

VanEck’s report underscores the transformative shift in government support for Bitcoin, with growing investor interest as many believe their portfolios are under-allocated in crypto assets. While acknowledging the possibility of market overheating, they maintain a cycle price target of $180,000 per BTC, citing strong bullish indicators and fundamentals.

Bitcoin’s Bullish Future

According to Ali Martinez, a well-known crypto analyst on X (formerly Twitter), Bitcoin could see a surge to $108,000 in the coming weeks, followed by a potential rally to $135,000 by the end of 2024. This bullish outlook aligns with broader market sentiment, where increasing institutional interest and favorable regulatory developments are expected to drive Bitcoin’s price higher.

In conclusion, the Bitcoin ETF market is experiencing an unprecedented surge in demand, with $3.38 billion in inflows this week, signaling a strong bullish momentum for the leading cryptocurrency. As Bitcoin nears the $100,000 milestone, analysts predict that the next phase of the bull market could see even greater price gains, with targets as high as $180,000. Investors are eagerly watching for new developments, particularly in terms of regulatory support and the impact of the 2024 Bitcoin halving, which could push the price to new heights in the coming months.