Bitcoin News Today: Institutional Shifts Power Bitcoin’s Path to $110K+

Bitcoin is set for a potential 44% price increase in the final quarter of 2025, according to forecasts by cryptocurrency analysts, driven by a shift in institutional investment and ETF inflows. These predictions contrast with recent short-term volatility, which has seen the asset consolidate in a range of approximately $110,000 to $120,000 after peaking above $124,000 in mid-August [1]. Analysts have highlighted this as a potential inflection point for the cryptocurrency, with the possibility of a break below $105,000 to $100,000 if momentum fails to recover [1].

The growing dominance of Bitcoin ETFs has played a critical role in shaping market dynamics. Institutional investors increased their exposure to Bitcoin ETFs to $33.6 billion in the second quarter of 2025, with advisors holding over $17.4 billion in positions, nearly double that of hedge funds [2]. BlackRock’s iShares Bitcoin Trust (IBIT) has become the largest institutional custodian of Bitcoin, holding 745,357 BTC, surpassing both Coinbase and Binance [3]. This shift indicates a preference for ETFs as a custody solution, reducing liquidity on exchanges and making prices more sensitive to marginal flows [3].

Bitcoin ETF inflows have regained momentum after a six-week outflow streak. On August 25, the sector recorded $219 million in net inflows, with BlackRock, Fidelity, and ARK Invest capturing the majority of the inflows [3]. This recovery coincided with a shift in sentiment following Federal Reserve Chair Jerome Powell’s dovish remarks at the Jackson Hole Economic Symposium, which helped shift the “Crypto Fear & Greed Index” back into greed territory [3]. Meanwhile, the decline in exchange inflows has reduced short-term selling pressure, with on-chain data showing historically low deposits on platforms like Coinbase and Binance [3].

Ethereum, while not the focus of the price forecasts, has also captured significant attention and capital. On August 26, Ethereum ETFs recorded $455 million in net inflows, nearly five times the $88 million drawn by Bitcoin ETFs on the same day [3]. This rotation reflects an institutional appetite for yield-bearing assets, as staked Ethereum offers returns that Bitcoin does not. Ethereum’s price has surged over 200% from April lows, outperforming Bitcoin’s 45% gain during the same period [1].

The broader market structure is shifting as institutional investors increasingly favor ETFs for custody over direct exchange storage. This trend has tightened liquidity, making price movements more sensitive to ETF inflows and outflows [3]. As Bitcoin ETF holdings grow and exchange inflows decline, the market is witnessing a structural realignment in how liquidity is managed in bull and bear cycles [3]. Given the current trajectory and ETF dominance, analysts suggest that dips toward $110,000 present accumulation opportunities for long-term investors, with Bitcoin ETFs reinforcing a bullish outlook for the asset [3].

Source:

[1] Ethereum rally continues as recent crypto softness puts bitcoin price at inflection point (https://finance.yahoo.com/news/ethereum-rally-continues-as-recent-crypto-softness-puts-bitcoin-price-at-inflection-point-183003036.html)

[2] Institutional investors reach $33.6B in Bitcoin ETF holdings during Q2 (https://cryptoslate.com/institutional-investors-reach-33-6b-in-bitcoin-etf-holdings-during-q2/)

[3] Bitcoin ETF Inflows: BTC-USD Rebounds to $111K as Institutional Rotation, BlackRock’s Dominance, and Market Impact (https://www.tradingnews.com/news/bitcoin-etf-inflows-btc-usd-recovers-to-111k-usd)