Institutional buying has spurred a surge in the cryptocurrency market, with Bitcoin skyrocketing after crossing $116,000 this morning, and it further broke the $118,000 mark at noon, continuing to set historical highs.
According to CoinGecko pricing, Bitcoin reached a peak of $118,254 during midday trading but has since fallen to $117,838, up 5.9% in the past 24 hours. Jeff Mei, COO of cryptocurrency exchange BTSE, stated:
We believe that Bitcoin reaching a historical high is a strong signal indicating that a 'major bull market is about to start'.
Vincent Liu, Chief Investment Officer of Kronos Research, pointed out that the recent macroeconomic environment is stabilizing, coupled with institutional investors accelerating their positioning, reigniting market enthusiasm for Bitcoin. He added:
This wave of capital shift reflects the market's increasing confidence in Bitcoin, seeing it as a regulated long-term asset, much like a digital version of gold.
However, he also cautioned that if the U.S. Consumer Price Index (CPI) data set to be released on July 15 reignites inflation concerns, a profit-taking wave may emerge in the market, suppressing Bitcoin's upward momentum.
Single-day inflow of nearly $1.2 billion, Bitcoin spot ETFs welcome the second-highest capital inflow in history.
Bitcoin spot ETFs played a key role in this round of momentum. Statistics show that the net inflow for U.S. Bitcoin spot ETFs reached $1.18 billion on Thursday, setting the second-highest record since their listing, with institutional funds fully committed and unrelenting.
Min Jung, a senior analyst at Presto Research, stated:
This surge in ETF buying reflects the market's renewed expectations of U.S. rate cuts and institutional investors' growing appetite for Bitcoin.
He added that many companies have begun to follow the strategy of incorporating Bitcoin into their asset allocation, and the listing of ETFs has further lowered the entry threshold, with this continuously expanding demand base being crucial fuel for driving Bitcoin higher.
Despite the uncertainties such as tariff risks looming in the short term, Min Jung believes that the cryptocurrency market still has multiple tailwinds to support the continuation of the bullish trend:
Looking ahead, even though there are still variables in the short term, the expectation of the U.S. initiating a rate-cutting cycle, along with the growth trend of institutional adoption, will provide strong tailwinds for future market performance.
We believe that demand for Bitcoin spot ETFs may remain strong in the medium term, especially as Bitcoin's role in diversified portfolios continues to evolve.
"ETF attracted nearly $1.2 billion in a single day! Bitcoin 'surged past $118,000' to set a new record" was first published on (Blockkey).
