Bitcoin (BTC) Price to Hit 75k Before US Elections as Blackrock Logs another $318M Inflows

Bitcoin Price Analysis: 

After reaching a new 90-day peak of $73,565 on Wednesday Oct 29, an early profit taking wave triggered a 5% pull back as BTC opened trading around $70,272 on Friday, Nov 31. The latest trading data from Bitcoin ETFs suggests institutional investors are piling on additional capital inflows towards BTC as the US Elections draw closer.

With crypto-favorite candidate Donald Trump leading the polls, could a last minute buying frenzy drive Bitcoin price above the elusive $75,000 milestone ahead of the Elections?

Blackrock’s IBIT ETF Logs $320M Inflows Despite 5% BTC Price Dip 

On Oct 31, Bitcoin price tumbled 5%, falling as low as $68,800 before bulls battled back to close the day just above the $70,270 level.

But while short-term traders and retail investors took profits as BTC fell shy of breaking new all-time highs this week, trading data from Bitcoin ETFs shows that US-based corporate investors are doubling down on their bullish positions ahead of the US elections slated for Nov 5.

The SosoValue chart below, tracks the daily net-flow of BTC balances from the 11 Bitcoin ETFs actively trading within the US markets.

On Oct 31, BlackRock’s IBIT fund once again outshine its peers, demonstrating resilience and steady investor interest despite the volatile price environment.

The IBIT fund logged $318 million in net inflows on Oct. 31, even as Bitcoin price dipped by 5% to $68,800. This brings IBIT’s total inflows for the week to over $2 billion, underscoring investor confidence in BlackRock’s offering amid shifting market conditions.

The latest inflow comes on the heels of a record-breaking day on Oct. 30, when IBIT captured $875 million in fresh investments, surpassing its previous high of $849 million. This surge in capital has pushed total U.S. spot Bitcoin ETF holdings above the 1 million BTC mark, a milestone that underscores the growing institutional appetite for Bitcoin exposure through traditional financial products.

While BlackRock’s IBIT fund continues to expand, other players in the sector have seen mixed results.

Valkyrie’s BRRR ETF added approximately $2 million on Thursday, but several other ETFs struggled. Fidelity’s FBTC, for instance, saw $75 million in net outflows, ending a two-week streak of positive momentum. ETFs managed by ARK Invest/21Shares, Bitwise, VanEck, and Grayscale collectively experienced outflows totaling $213 million.

Despite these variances, IBIT’s robust inflows have helped keep the overall U.S. spot Bitcoin ETF market buoyant, with the sector collectively attracting over $30 million in new investments for seven consecutive days. IBIT alone has amassed nearly $30 billion in assets since its launch, with approximately half of these assets accumulated in the past month.

US Spot Bitcoin ETFs Surpass 1 Million BTC Holdings

The rapid growth in IBIT’s assets underscores BlackRock’s dominance in the nascent U.S. Bitcoin ETF space.

Bloomberg ETF analyst Eric Balchunas highlighted IBIT’s exceptional inflows, noting that the fund has outperformed some of the most established ETFs on the market, including Vanguard’s VOO, iShares’ IVV, and AGG, despite being less than a year old.

“$IBIT took in more cash than any other ETF in the world over the past week. This is out of 13,227 ETFs, which includes $VOO $IVV $AGG etc. It’s so hard to beat those veteran Cash Vacuum Cleaners, even for a week, especially for an infant ETF (3mo-1yr old)”

Bloomberg Analyst, Eric Balchunas, Oct 31, 2024

This level of investor interest in Bitcoin ETFs could be indicative of a broader trend: institutional investors increasingly view Bitcoin as a hedge and a potential beneficiary of the ongoing election-related uncertainty in the U.S. economy.

As the election approaches, the correlation between political events and Bitcoin’s price trajectory has caught the attention of market analysts, with some predicting that a favorable election outcome for Trump could catalyze another wave of inflows into Bitcoin and related assets.

Bitcoin Price Forecast: All Eyes on $75,000 Target

Following Bitcoin’s pullback from its recent peak, technical analysis indicates that the $75,000 mark remains within reach, with sustained institutional inflows acting as a critical driver.

Bitcoin has found support near the 20-day Simple Moving Average (SMA) at $68,106, which has historically provided a strong base for its upward momentum.

The lower Bollinger Band sits around $63,884, further reinforcing this support level. A drop below this level, however, could signal a deeper retracement to $62,500.

On the resistance side, Bitcoin faces a key barrier at the upper Bollinger Band near $72,328. Should it break past this level, the path to $75,000 could be cleared, potentially sparking a new rally.

Meanwhile, the Chande Momentum Oscillator (ChandeMO) reading of 20.32 indicates moderate bullish momentum; if this momentum continues to rise, buying pressure could intensify, driving prices higher.

As Bitcoin holds above $68,106 and election anticipation builds, the outlook remains cautiously bullish. Institutional inflows are expected to keep BTC on a strong footing, with the $75,000 milestone well within sight ahead of Election Day.