BlackRock’s ETF Could Lock Bitcoin at $104K—New Floor or False Hope?

Bitcoin’s wild ride just hit a potential turning point. As institutional money floods in through BlackRock’s ETF, the $104K level emerges as a litmus test for bulls. Forget ’number go up’—this is about Wall Street’s stamp of approval.

Why $104K matters now: Liquidity from the world’s largest asset manager changes the game. Retail traders used to set the floor. Now it’s trillion-dollar balance sheets calling the shots.

The cynical take? Watch how fast the ’decentralized’ crowd cheers when traditional finance saves their bags. Either way, the next 30 days will show whether crypto’s big institutional bet pays off—or leaves hodlers searching for the next support level.

Bitcoin’s centralization shift : Opportunity or risk?

Ironically, Bitcoin was built on the core principle of decentralization. In essence, no single entity calling the shots. But that ideal is starting to blur. 

BlackRock’s IBIT spot ETF now holds over 631,000 BTC, worth about $65 billion. That’s nearly 3% of Bitcoin’s total supply sitting in one institutional wallet.

In short, a sizable chunk of the fixed 21 million BTC is now heavily concentrated.

However, according to AMBCrytpo, this isn’t just about adoption. Instead, it’s a structural shift in BTC’s liquidity profile. 

With supply increasingly locked in cold, non-speculative hands, Bitcoin’s volatility engine is cooling. What’s emerging is a leaner, scarcer asset — one which is more like a digital gold, and less like a casino chip.

So, the idea of bitcoin hitting six figures might just be the beginning, not the peak. In fact, it is redefining centralization not as a risk, but potentially as a bullish driver.

Lower volatility sets the stage for BTC’s next bull run

Major capital inflows into Bitcoin ETFs, especially BlackRock’s IBIT, have consistently acted as catalysts for bullish price action.

In November 2024, IBIT spearheaded record inflows of $5.6 billion, coinciding with a 45% BTC rally toward $99k.

Similarly, a $849 million single-day inflow in March 2024 into IBIT preceded BTC’s new all-time high above $73k.

February 2024 saw $1.10 billion+ weekly inflows across spot ETFs like IBIT and Fidelity’s FBTC, fueling sustained price appreciation.

Source: Bitbo

With each wave of inflows, BTC’s volatility cools, shifting rallies from hype-driven spikes to moves backed by solid bid support.

So, calling a peak at this stage — just because liquidity is getting more centralized — might be jumping the gun. 

The bigger picture suggests Bitcoin is gearing up for the next leg higher, powered by real capital rather than speculative frenzy.