Prices on the crypto market are rising again. The Bitcoin price has reclaimed the $93,000 mark, and with it, investor optimism is rising again. For the first time since Donald Trump took office, anything seems possible again. The Fear and Greed Index isn’t the only indicator that investors are becoming more optimistic again. Demand for spot Bitcoin ETFs is also exploding again, primarily reflecting the euphoria of institutional investors. This means that the rise toward $100,000 shouldn’t be long now.
$912.7 million invested
The launch of the Spot Bitcoin ETFs was the biggest game-changer in the crypto market. Bitcoin rose to a new all-time high shortly after the funds began trading, and the high demand from institutional investors also led to Bitcoin remaining more stable than other assets during the crisis. This also cemented Bitcoin’s reputation as digital gold, which in turn led to even higher demand.
Yesterday alone, issuers of spot Bitcoin ETFs invested $912.7 million in Bitcoin. BlackRock, Fidelity, and others are required to buy Bitcoin whenever customers purchase shares in their ETFs to collateralize them. With a capital inflow of more than $912 million in a single day, the influence of ETFs on the Bitcoin price quickly becomes clear. And this could just be the beginning.
All-time high expected
Optimism is returning to global financial markets. This is due, among other things, to Trump once again holding out the prospect of an agreement with China and again talking about a deal that will be acceptable to all sides. However, institutional interest in Bitcoin could be greater than ever after the recent crisis.
Bitcoin has lived up to its reputation as digital gold and held up significantly better during the crash than assets previously considered safe. The shares of the world’s largest companies have fallen significantly more sharply. It has also become clear that the fact that Bitcoin is not dependent on the politics and currency of a single country can be a huge advantage. The recent gold rally has also shown how much room for improvement there is here.
The Bitcoin price has often tracked the gold price in the past, and gold reached a new all-time high just this week. Most importantly, the gold rally has shown that Bitcoin, with a market capitalization of $1.8 trillion, is still extremely undervalued, considering gold’s valuation of $22.3 trillion.
[newsletter_form lists="1"]
