Bitcoin Tops $80,000 on Institutional, Spot ETF Inflows as Market Debates Rally’s Staying Power
Summary
- Inflows from institutional investors and spot exchange-traded funds (ETFs) helped drive Bitcoin’s break above $80,000.
- K33 and others said Bitcoin has likely already passed the low of this market cycle, citing changes in the US regulatory environment and the limited depth and duration of the recent decline.
- Still, more confirmation is needed on whether the rally can continue, given the $87,000-$88,000 resistance zone, profit-taking pressure, and the impact of short-covering.
Forecast Trend Report by Period
Bitcoin rebounded on inflows from institutional investors and exchange-traded products, but the market remains split over whether the advance can continue.
The Block reported on Sept. 23 that K33, Nexo and Sygnum identified inflows from institutional investors and spot exchange-traded funds as key drivers behind Bitcoin’s move above $80,000. K33 noted that Bitcoin ETPs recorded their biggest daily net inflow since November 2024.
K33 said Bitcoin has likely already passed the low of this market cycle. It said the recent decline was more limited in both depth and duration than the bear markets of 2013, 2017 and 2021. Derivatives positioning and investor sentiment also showed no clear signs of another sharp near-term drop.
Changes in the US regulatory backdrop have also been cited as a bullish factor. Steven Coltman, head of macroeconomics at 21Shares, said the Securities and Exchange Commission’s exemptive relief related to trading in tokenized assets, along with follow-up rulemaking by the Commodity Futures Trading Commission, is improving sentiment in digital-asset markets.
In the near term, the key question is whether Bitcoin can break through a major resistance zone. Daniela Hathorn, senior market analyst at Capital.com, put near-term resistance at $87,000 to $88,000. A break above that range would make $90,000 the next major resistance level. If the rally fails, profit-taking could trigger a pullback to $84,000 to $85,000.
Nexo took a more cautious stance, citing weaker trading volume, narrowing market breadth and rising leverage. Inflows through spot ETFs are a positive sign. Still, it said more confirmation is needed on whether the latest rebound can turn into a sustained rally rather than a temporary rise driven by short-covering.
Meanwhile, Fundstrat co-founder Tom Lee argued that a new crypto bull market began in late June. He cited a shift in capital from artificial intelligence-related assets into crypto, growth in the tokenization market and changes in the traditional four-year cycle as key reasons.
Suehyeon Lee
shlee@bloomingbit.ioI'm reporter Suehyeon Lee, your Web3 Moderator.