Demand for Bitcoin Is Increasing, Will BTC Reach $70 Thousand in October?

Demand for Bitcoin (BTC) is rising again after remaining mostly stagnant since May. Current demand reached 177,000 BTC per month before a 5 percent rally last week.

According to CoinDesk Indices data, bitcoin rose 11% on a weekly basis, outperforming the CoinDesk 20 Index (CD20), which rose 9.6% in the same period.

CryptoQuant analysts led by Julio Moreno said in the weekly report that this was the biggest reading since late April and helped BTC surge above $67,800, its highest price level in ten weeks.

“For Bitcoin prices to rise sustainably to the highest level of all time, demand must expand. Currently, demand has peaked at 490,000-550,000 BTC,” said Moreno, pointing out that a favorable environment has been prepared for the prices to increase.

The chart below shows the increasing demand before the BTC price rises to record highs in 2020-2021 and 2024.

Spot exchange-traded funds (ETFs) in the US helped push the bitcoin price to new highs, with an average daily positive inflow of nearly 9,000 BTC in Q1 2024.

Data from SoSoValue shows that US BTC ETFs recorded another significant inflow yesterday with $458.5 million. Of all the products listed, BlackRock’s IBIT has the most share at $393.4 million.

The total balance of bitcoin whales, excluding exchanges and mining pools, continues to increase every year, reaching 670,000 BTC. Additionally, asset growth is above the 365-day moving average, which is a positive sign for prices.

The BTC open interest (OI)-weighted perpetual futures funding rate rose to a multi-month high above 0.0136 percent earlier this week, signaling increased volatility.

Bettors on the prediction market Polymarket are giving a 64% chance that BTC will reach $70,000 in October, and that odds are up 45% in the past week.