Bitcoin (BTC) Price Prediction: BTC Nears $50k as Market Anticipates the Launch of Multi-Asset Crypto ETFs

Bitcoin (BTC) price is approaching the $50,000 mark as the market eagerly awaits the launch of multi-asset crypto ETFs.

Bitcoin’s available supply is dwindling as investors have withdrawn a staggering $504.4 billion worth of the cryptocurrency from exchanges over the past five years.

Now, the crypto’s exchange supply has hit a seven-year low, according to data from CryptoQuant.

At the same time, institutional interest from Wall Street and beyond has seen demand for the asset skyrocket.

As a result, market analysts are predicting that the situation could trigger a supply shock which may catapult Bitcoin’s price to a new all-time high.

“We can see this squeeze higher and there is an incentive to keep prices high,” Markus Thielen, co-founder of crypto market research platform 10x Research, said on investor Scott Melker’s podcast this week.

The analysis comes as Wall Street’s demand for the top crypto has been on the rise.

And with President Donald Trump’s pro-crypto policies, market watchers are expecting that demand to continue, potentially pushing the price of Bitcoin to $200,000 or even higher.

“National priority”

Last week, Trump issued an executive order which highlighted the growth of the US crypto ecosystem as a “national priority.”

Bitwise chief investment officer Matt Hougan said the news was “bullish to the extreme” for crypto and that it will channel trillions of dollars in investor funds into the market.

In December, Hougan predicted that Bitcoin’s price could reach $200,000 by 2025, echoing the sentiment of Standard Chartered and Bernstein.

This week, he said the prediction “may turn out to be conservative.”

ETF enthusiasm

2024 saw Wall Street heavyweights enter the crypto market en masse, particularly with the launch of US spot Bitcoin exchange-traded funds from firms like BlackRock.

These funds raked in $107 billion in assets under management during their first year, which is a record for any ETF launch.

The investment vehicle acted as a black hole for Bitcoin’s supply, sucking up more than 5% of the asset’s total supply and showing no signs of slowing down its buying pressure.

While single-asset ETFs made their mark last year, analysts are expecting the market to expand to include multi-asset crypto ETFs in 2025.

A new report from Coalition Greenwich, S&P Global’s financial analytics arm, said that asset managers have shown interest in multi-asset crypto ETFs which would offer exposure to a basket of cryptocurrencies, including Bitcoin.

Company stockpiles

Bitcoin’s supply has also been locked up by companies who are holding it in their treasuries.

“We are definitely going to see more institutional adoption adding to the balance sheet,” Melker said on his podcast.

Last year, software company MicroStrategy continued to add to its Bitcoin treasure trove, bringing its stockpile to over 470,000 of the cryptocurrency.

Other firms, like Boyaa Interactive and Genius Group, have amassed similar stockpiles, albeit to a smaller scale.

But more could be on the way.

For example, the Free Enterprise Project, a Washington-based advocacy group, has launched a campaign to convince Big Tech firms, such as Amazon and Meta, to follow in MicroStrategy’s footsteps and add Bitcoin to their holdings.

Crypto market movers

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