Bitcoin has surpassed the $100,000 level for the first time in more than three months, according to the latest report published by Bitfinex Alpha, the analytics platform of cryptocurrency exchange Bitfinex.
Bitcoin, which has fallen 32 percent from its all-time high reached in January, has gained strong momentum with this rise and given signals of a return to the bull market.
This recovery is supported by macroeconomic developments such as the Fed’s dovish rhetoric and the easing of global trade tensions. The report argues that Bitcoin has outperformed equity markets in line with the general increase in risk appetite.
According to the report, fund flows also support this rise. While the realized market value reached an all-time high, there was an inflow of over $920 million into Bitcoin ETFs in the last two weeks. According to on-chain data, there has been a significant decrease in the number of Bitcoins held at a loss; more than 3 million BTC have returned to profit. Increasing spot trading volume and ETF investments led by institutional investors show that Bitcoin is structurally on solid ground. As macro conditions remain supportive, short-term declines are expected to quickly turn into buying opportunities and BTC is expected to reach new highs.
On the other hand, the FED kept interest rates steady due to concerns about rising inflation and unemployment. FED Chairman Jerome Powell, drawing attention to the uncertainty in the economic outlook, stated that they would not take new policy steps without more data. Although the market expects a rate cut before July, it is seen that the FED prioritizes price stability and avoids reacting quickly to the slowdown in growth.
According to Bitfinex analysts, there is increasing interest in the cryptocurrency sector at institutional and state levels. However, regulatory and political hurdles still persist. In this process, New Hampshire took a pioneering step in this area by passing laws that allow investments in cryptocurrencies and precious metals. This move shows that integration is accelerating at the state level, despite the ongoing digital asset debate at the national level.
In the private sector, BlackRock has held talks with the SEC on adding a “staking” function to crypto ETFs and improving regulation of options trading. The talks are seen as a significant step towards providing staking support in Ethereum-based ETFs. It also shows that the SEC is taking a more proactive stance on digital assets.
*This is not investment advice.
