CryptoQuant CEO Says Bitcoin Rally Intact: ETFs & MSTR Fuel Demand

• Unlike 2021’s GBTC slowdown, 2025 Bitcoin ETF holdings have kept rising, supporting the bull cycle.
• CryptoQuant data showed Bitcoin ETFs continue to see strong inflows, signaling sustained demand.
• Long-term Bitcoin holders increased as short-term traders declined, reducing market volatility.

Bitcoin (BTC) experienced price fluctuations recently, starting with a stable weekend before market dynamics shifted early in the week. The asset traded between $104,000 and $105,000 over the last weekend, maintaining a tight range.

However, Monday mirrored the previous week’s trend, with bearish momentum driving a sharp decline. Bitcoin later dropped significantly, falling below $98,000 in a sudden market downturn.

Despite this drop, the crypto quickly regained six-digit territory by the end of the day. The following days remained relatively calm, aside from a temporary dip near $100,000.

Investors closely monitored the Federal Reserve’s interest rate decision, which was announced Wednesday evening. When the expected decision to hold interest rates steady was confirmed, Bitcoin saw another drop from $103,000 to $101,500 before rebounding.

By press time, the BTC price traded at approximately $103,934, recovering by over $4,000 since its midweek decline. A market watcher has indicated that the current bull cycle remains intact amid this fluctuation. Institutional interest continues to drive demand.

Institutional Activity and ETF Inflows

Data shared by Ki Young Ju, founder and CEO at CryptoQuant, showed no significant slowdown in institutional buying.

Young Ju indicated that the BTC cycle remains active until ETF inflows, MSTR, and institutional buying slow. The CEO also pointed to historical trends, comparing the current market to previous cycles.

Bitcoin price swings chart from mid-2020 to early 2021 showed how institutional accumulation via GBTC coincided with price increases. Bitcoin climbed above $60,000 in April 2021 as GBTC holdings increased steadily.

However, a stagnation in holdings marked the beginning of a market correction as inflows into GBTC slowed. A similar trend has yet to appear in 2025 as spot Bitcoin ETF holdings continue to rise sharply.

Young Ju’s ETF tracking data indicated continued demand. The aggregate holdings of multiple spot BTC ETFs have increased significantly into early 2025, with the BTC price surpassing $100,000 as of January 30.

In the 2021 cycle, GBTC inflows eventually slowed. Unlike that time, no visible decline in ETF buying has emerged this year, suggesting continued institutional interest.

Bitcoin ETFs Experience Strong Capital Inflows

Further data reinforced the outlook for sustained institutional engagement. Information from SosoValue indicated substantial inflows into Bitcoin ETFs, reflecting robust market participation.

On January 30, Bitcoin ETFs recorded a total net inflow of $588.22 million, signaling strong investor demand. The cumulative net inflow since the launch of BTC spot ETFs exceeded $40.18 Billion.

The total value traded for Bitcoin ETF shares on the same day reached nearly $3 Billion, underscoring significant market activity. Meanwhile, total net assets held by Bitcoin ETFs amounted to $123.43 billion, representing 5.94% of Bitcoin’s total market capitalization.

Long-Term Holders Increase

Additional data provided insights into Bitcoin ownership trends by categorizing wallet addresses based on holding duration. The analysis segmented Bitcoin addresses into three groups.

These groups include long-term holders (1 year or more), mid-term holders (1-12 months), and short-term traders (less than one month).

The data showed a 0.87% increase in long-term holders, indicating continued confidence among investors. Mid-term holders also saw a rise of 1.14%, suggesting a steady accumulation trend.

However, the number of short-term traders dropped significantly by 11.32%, reflecting reduced speculative activity. A decline in short-term trading often reduces price volatility, supporting steadier price appreciation.

Disclaimer

In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.