Bitcoin Surges Over 5% as Macroeconomic Shifts and ETF Inflows Boost Momentum$BTC
Bitcoin extended its upward trajectory with a gain of more than 5% over the past 24 hours, continuing a rally that has now lasted more than a week. The latest price action is being driven by a combination of macroeconomic tailwinds and renewed institutional interest.
Macroeconomic Support: Falling Yields, Weaker Dollar
Investors are rotating back into risk assets as bond yields decline and the U.S. dollar weakens. These conditions often create a favorable backdrop for cryptocurrencies, which tend to benefit when traditional yields are less attractive.
Spot Bitcoin ETFs See Renewed Interest
Adding fuel to the rally is a noticeable uptick in flows into U.S.-based spot Bitcoin ETFs. Institutional investors appear to be reallocating capital into digital assets, viewing them as a hedge in an evolving economic landscape. These flows are seen as a vote of confidence in Bitcoin’s long-term potential.
Geopolitical Shifts Could Further Lift Markets
Meanwhile, the U.S. government is reportedly considering a rollback of tariffs in response to rising political pressure to compete with China and revive domestic manufacturing. While full details are not yet available, markets have responded positively to the possibility, anticipating a lift in investor sentiment and a renewed appetite for risk.
Analyst Insight: Shaurya Malwa
Shaurya Malwa, Co-Leader of CoinDesk's tokens and data team in Asia, emphasized the role of liquidity and investor behavior in the current rally. Malwa, an experienced market analyst with holdings in over 30 tokens and exposure to multiple DeFi platforms, notes that decentralized liquidity and institutional momentum are converging in a way that’s "structurally bullish" for crypto markets.
As macro conditions continue to evolve and political developments unfold, all eyes will remain on Bitcoin's ability to maintain its current trajectory—and whether altcoins will follow suit.
