The price of Bitcoin, the world’s largest cryptocurrency, may be poised for a significant breakout, driven by increasing institutional interest and strong inflows into Bitcoin exchange-traded funds (ETFs) that just launched in the US in January.

Recent data shows that Bitcoin ETFs recently collected an additional 15,000 Bitcoins while only just over 3,000 were mined, potentially indicating an imbalance between supply and demand that could drive prices even higher.

BlackRock, the world’s largest asset manager, has shown particular success: on October 25 alone, recent inflows from its ETF exceeded $292 million. This appetite by ETF managers for Bitcoin is seen as a harbinger of a possible breakout above its previous all-time high of around $73,000 in March.

There are several key factors driving Bitcoin’s potential rally. First, Bitcoin ETF holdings total nearly one million Bitcoin, accounting for nearly 5% of the total supply. This rapid accumulation on Wall Street in less than a year reflects continued positive price momentum. Secondly, Bitcoin’s supply shortage means that prices will continue to rise as the available supply for trading becomes more limited.

Third, MicroStrategy stock, which is closely linked to Bitcoin’s value as it is the largest corporate holder of Bitcoin, has also performed well in recent months, suggesting that Bitcoin itself could follow suit.

While some altcoin holders may remain bearish, Bitcoin holders are generally optimistic due to ongoing price action reflecting proximity to previous all-time highs. The combination of institutional inflows, supply constraints, and technical breakouts suggest that Bitcoin could be in for a significant price move in the coming weeks.

Still, investors should remain cautious and consider the volatility of the cryptocurrency markets. Although the signals appear bullish, unforeseen events can still impact Bitcoin price action, especially during an election cycle.