In January 2024, a major event shook the Bitcoin market when Spot Bitcoin ETFs were approved. This decision proved to be a game changer for the crypto space. Immediately after the approval, Bitcoin’s demand surged, and within no time, its price touched close to $110,000. It wasn’t just a technical breakout — a wave of new institutional investors also entered the market.
The Impact of Spot ETFs
Until now, crypto assets were largely limited to retail investors, making the market highly volatile and adoption relatively slow. But Spot ETFs provided institutional investors with a regulated and secure route to gain exposure to Bitcoin without directly holding the asset. This increased market liquidity and made price discovery more transparent.
After the January 2024 approvals, major financial institutions like BlackRock, Fidelity, and Ark Invest launched their Spot ETF products, bringing in billions of dollars in inflows. This shifted market sentiment to a positive zone and helped Bitcoin touch new all-time highs.
Halving’s Role
The Bitcoin halving, which took place in April 2024, further fueled this bull market. Every four years, Bitcoin mining rewards are cut in half, reducing the rate at which new Bitcoins enter circulation. Historically, this has been a major factor driving Bitcoin’s price upwards.
After the halving, mining operational costs increased, but due to higher prices, miners were less pressured to sell their holdings. This tightened the circulating supply while demand — boosted by ETFs and retail buyers — continued to grow.
What’s Happening in Q2‑Q3 2025?
Now, as we move through the second and third quarters of 2025, the market seems to have entered a phase of relative stability. Bitcoin is consolidating between $105K and $110K, while institutions are steadily increasing their allocation to digital assets.
At this stage, market focus is on ETF inflows, macroeconomic data, and the Federal Reserve’s interest rate decisions. If monetary policy remains supportive, many experts believe Bitcoin could test the $130K level by the end of 2025.
Final Thoughts
The 2024 Spot ETF approvals and Bitcoin halving attracted a wave of new investors and capital into the crypto market. Now, the mid-2025 phase looks like a period of healthy consolidation, but the fundamentals remain strong. Institutional adoption, growing regulatory clarity, and Bitcoin’s limited supply position this bull cycle to sustain itself.
If macroeconomic conditions continue to align, Bitcoin appears well-positioned for its next big ra
ly in the months ahead.