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Bitcoin Surges Above $100k: What Analysts Are Saying
Bitcoin (BTC) has seen a significant increase of nearly 20% over the past month, breaching the US$100,000 mark (approximately AU$156,000) for the first time since February. Despite a brief pause linked to the US-China trade tensions, experts believe this could signal a potential rise to new all-time highs.
In a recent analysis from Bitfinex, it was noted that the current Bitcoin breakout represents a continuation of the robust momentum observed since the cryptocurrency reclaimed multi-month range lows. Analysts are optimistic about Bitcoin’s performance relative to equities and other risk assets as macroeconomic factors come back into focus.
The report highlights that the renewed clarity regarding Federal Reserve interest rate paths and US tariffs has bolstered market confidence, fueling Bitcoin’s impressive bullish trajectory.
Institutional Demand Surpasses Retail Interest
Significantly, analysts have indicated that the primary driver of Bitcoin’s price movement is institutional demand, rather than retail speculation. They suggest that exchange-traded fund (ETF) flows are becoming structurally separate from short-term market fluctuations, marking a trend towards consistent investments rather than opportunistic buying.
This shift indicates a more mechanical demand, arising from strategic portfolio mandates rather than discretionary trades. The rise in spot volumes, coupled with lower volatility, suggests that institutional investments are currently dictating price movements.
As long as the flow of ETF investments remains strong, analysts believe that institutional demand will provide a robust support level for Bitcoin, indicating that the recent surge above US$100,000 could be the start of a more sustained upward trend.
What’s Driving the Bold Bitcoin Buyers?
Recent data suggests that US spot Bitcoin ETFs are experiencing unprecedented inflows, amounting to nearly US$1 billion last week alone. According to a report from CoinShares, total inflows now exceed US$6.7 billion, nearing the peak of US$7.3 billion reached in early February.
BlackRock’s iShares Bitcoin ETF is notably breaking records, with four consecutive weeks of net inflows, highlighting a significant resurgence in market interest. Indeed, on Twitter, finance commentator Nate Geraci celebrated the ETF’s 20 days of continuous inflows, boasting over US$5 billion in new investments and questioning the previous narrative of “no demand.”
Beyond ETFs, notable Bitcoin investors are also making significant purchases. Strategy, formerly known as MicroStrategy, recently acquired an additional 13,390 BTC for US$1.34 billion (AU$2.09 billion), bringing their total holdings to 568,840 BTC.
In a similar vein, Metaplanet, a notable investment group in Asia, expanded its Bitcoin stockpile by purchasing another 1,241 BTC, thus amassing a total of 6,796 BTC—more than the entire reserves of El Salvador.
Conclusion
The resurgence of Bitcoin above the US$100,000 threshold has caught the attention of analysts and investors alike, with institutional demand playing a pivotal role in driving prices. As market dynamics shift towards sustained ETF investments and significant institutional acquisitions, the outlook for Bitcoin appears increasingly optimistic, potentially paving the way for new historical highs.
