Bitcoin prices rose today, hitting an all-time high, approaching $110,000, after three supporting structural factors converged to drive the cryptocurrency upward, according to analyst Austin King.
The price of the cryptocurrency today reached approximately $109,900, according to Coinbase data from TradingView.
King, co-founder of the Omni Network, stated via email: "Bitcoin reaching the $109,000 level is not just speculative volatility, but a culmination of three converging structural tailwinds occurring simultaneously."
■First, standard demand from exchange-traded funds in the United States is absorbing supply faster than miners can create it after last year's halving, as BlackRock's IBIT recorded a 20-day streak of inflows and total ETF inflows exceeded $3 billion in May alone," he noted.
■Secondly, policymakers are shifting from hostility to adoption: the stable "GENIUS" bill passed by the Senate, which received bipartisan support, and Texas's move towards creating a state-level strategic Bitcoin reserve, expand oversight and give institutions the confidence needed to allocate funds," King continued.
■Thirdly, the market observer pointed out that "the renewed trend towards hedging against inflation attracts major investors - as Blackstone has just conducted its first purchase of an exchange-traded fund - while ordinary investors seek protection from fixed price pressures," thereby providing the third structural support.
