Bitcoin Price Forecast: BTC extends gains above $106,000 as institutional demand fuels optimism
- Bitcoin price extends gains above $106,000 on Wednesday, following a 5% rise over the previous two days.
- Institutional demand continues to strengthen as ProCap BTC LLC buys 3,724 Bitcoin and spot ETF records $588.55 million in inflows.
- Fed Chair Jerome Powell will testify again after suggesting on Tuesday that the Fed isn’t in a rush to cut interest rates.
Bitcoin (BTC) price extends gains above $106,000 at the time of writing on Wednesday, having risen 5% over the previous two days. The institutional and corporate demand further supports the price recovery, as ProCap BTC LLC adds Bitcoin to its reserve and fresh inflows into Exchange Traded Funds (ETFs) occur. BTC traders await further cues from Federal Reserve (Fed) Chair Jerome Powell’s second day of testimony, scheduled for later on Wednesday.
Bitcoin demand remains robust, ETF flows remain a key market driver
Bitcoin price holds above $106,000 on Wednesday as demand from institutional investors continued to remain strong. So far this week, BTC has seen a series of accumulations from public companies, with Strategy, Metaplanet, and the Blockchain Group adding BTC to their treasury. Additionally, on Tuesday, Anthony Pompliano’s ProCap BTC, LLC purchased 3,724 Bitcoins within one day after announcing a $1 billion merger and an over $750 million fundraising on Monday.
Looking at the spot Bitcoin ETF demand, it continued its 11-day streak of gains since June 9. As shown in the SoSoValue chart below, the ETF recorded $588.55 million in inflows on Tuesday.
Total Bitcoin Sport ETF net inflow daily chart. Source: SoSoValue
A K33 report released on Tuesday provides a clearer picture of why ETFs move markets but Treasuries do not. The 30-day ETF flows chart below shows that the BTC returns share an R² of 0.80, highlighting that ETF flows remain a key market driver. In contrast, the growing trend of BTC treasury companies has shown minimal influence on price. This effect is generally due to the fact that many of these companies acquire BTC through in-kind share exchanges with existing holders, resulting in a net neutral impact on the market. This dynamic may help explain the weak relationship (R² of 0.18) between treasury flows and BTC returns.
30-day change in BTC treasury holding vs. 30-day BTC return (left chart). Sep 2024– June 23, 2025: 30-day returns vs 30-day Pubco change (Right) chart. Source: K33 Research
Bitcoin holds firm ahead of Jerome Powell’s second-day testimony
Bitcoin price started the week on a positive note, rising more than 5% in the last two days following the confirmation of a ceasefire between Israel and Iran on Monday. At the time of writing on Wednesday, BTC extends gains above $106,000 during the early European session as traders await more cues from Jerome Powell, who continues his two-day testimony before Congress later in the day.
Tammy Da Costa, Senior news reporter at FXStreet, reported on Tuesday, “His tone remained broadly consistent with recent commentary, emphasizing a data-driven approach while acknowledging progress on inflation.”
The analyst further explains that Powell reiterated that the Fed is not in a rush to lower interest rates, although the door remains open if incoming data supports such a move.
If Powell’s second-day testimony hints at a dovish stance, further supported by favorable macroeconomic data and hinting at lower interest rates, this could be a bullish case for riskier assets, such as BTC, as lower rates could prompt investors to shift toward them. However, if the Fed has a hawkish stance, it could have a bearish effect on the BTC price.
Bitcoin Price Forecast: Will BTC head towards its highs?
Bitcoin price reached a low of $98,200 on Sunday but recovered sharply by 5% over the next two days, closing above its 50-day Exponential Moving Average at $103,352. At the time of writing on Wednesday, it continues to trade higher at around $106,500.
If BTC continues its upward trend, it could extend the rally toward its May 22 all-time high at $111,980.
The Relative Strength Index (RSI) on the daily chart reads 54, above its neutral level of 50, indicating bullish momentum. The Moving Average Convergence Divergence (MACD) is hinting at a bullish crossover (the MACD line is close to crossing above the signal line), which, if completed, would give a buy signal.
BTC/USDT daily chart
However, if BTC faces a correction and closes below the 50-day EMA at $103,352, it could extend the decline to retest its Sunday low of $98,200.
Bitcoin, altcoins, stablecoins FAQs
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
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