Bitcoin News Today: Bitcoin ETFs Siphon Supply, JPM Projects $165K as Gold Gap Narrows

Bitcoin's price surged to within striking distance of its all-time high as U.S. spot Bitcoin exchange-traded funds (ETFs) recorded unprecedented inflows, signaling robust institutional and retail demand. On October 1, 2025, net inflows into Bitcoin ETFs reached $675.8 million, with BlackRock's IBIT leading the charge at $405.5 million, followed by Fidelity's FBTC at $179.3 million and Bitwise's BITB at $59.4 million . Over the preceding four trading days, cumulative inflows exceeded $2.25 billion, reflecting sustained optimism amid macroeconomic easing and the historically bullish "Uptober" period . Bitcoin's price climbed to $119,800 by October 2, 2025, with analysts noting that continued inflows could push the cryptocurrency toward its $124,474 peak .

The ETF inflows underscore a structural shift in Bitcoin's market dynamics. According to on-chain data, Bitcoin ETFs now hold over 1.4 million BTC, representing approximately 7% of its total circulating supply. This absorption rate has outpaced mining output, with ETFs purchasing over 6,000 BTC daily-four times the 1,400 BTC issued by miners . The tightening liquidity has reduced Bitcoin's availability on exchanges, creating upward price pressure. JPMorgan analysts highlighted this trend, projecting that Bitcoin could reach $165,000 by year-end based on its volatility-adjusted valuation relative to gold . The bank noted that Bitcoin's market cap of $2.448 trillion would need to rise by 42% to align with gold's $6 trillion private investment base, reinforcing the asset's undervaluation.

Institutional adoption has further accelerated, with BlackRock's IBIT entering the top 20 ETFs by assets, amassing $90.7 billion in net inflows since its January 2024 launch . The fund's dominance reflects broader confidence in Bitcoin as a store of value, with ETFs now accounting for 6.74% of Bitcoin's total market cap. This institutional demand has also influenced broader market correlations, with Bitcoin's performance spilling into tech-heavy equity indices and crypto-related stocks like MicroStrategy and Coinbase .

The ETF-driven demand has created a self-reinforcing cycle of price appreciation and inflows. Weekly inflows of $3.24 billion in late September 2025 marked the second-highest weekly total, nearly matching the record set in November 2024 . Analysts attribute this surge to expectations of U.S. interest rate cuts and seasonal strength in October, historically Bitcoin's second-best month for returns. The momentum has extended to Ethereum, which saw $1.06 billion in ETF inflows over the same period, though Bitcoin's dominance remains unchallenged .

Looking ahead, the interplay between ETF flows and Bitcoin's upcoming halving event in April 2026 could amplify price volatility. The halving, which will halve miner rewards to 450 BTC per day, is expected to exacerbate supply constraints, particularly as ETFs continue to absorb new supply at a rate exceeding 10 times mining output . While this scarcity narrative supports long-term price targets, traders must remain cautious about short-term corrections if outflows emerge or macroeconomic conditions shift.

[1] title1 (https://blockchain.news/flashnews/us-spot-bitcoin-btc-etf-net-inflows-hit-675-8-million-on-2025-10-01-ibit-405-5m-fbtc-179-3m-bitb-59-4m)

[2] title2 (https://invezz.com/news/2025/10/03/bitcoin-etfs-see-over-600m-in-inflows-as-btc-price-nears-120k/)

[3] title3 (https://www.coindesk.com/markets/2025/10/02/blackrock-s-ibit-enters-top-20-etfs-by-assets-sees-biggest-inflow-since-mid-august)

[4] title5 (https://www.coinlive.com/news/silent-force-how-bitcoin-etfs-dominate-supply)

[5] title9 (https://en.coinotag.com/bitcoin-etf-inflows-suggest-potential-uptober-breakout-as-price-moves-above-120000-on-rate-cut-hopes/)

[8] title8 (https://cointelegraph.com/news/bitcoin-etfs-uptober-3-2b-second-best-week-record)

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[10] title6 (https://bitcoinist.com/bitcoin-halving-and-spot-etfs-the-impending-btc-supply-shock/)