Bitcoin is creating a frenzy as it reaches a new record price of over $122,600, thanks to strong demand that exceeds limited supply.
Bitcoin's uptrend is driven by increasing institutional investment demand, coupled with the weakening of the USD and geopolitical factors, opening up prospects for prices to continue rising.
MAIN CONTENT
Demand from institutions significantly exceeds the limited supply of Bitcoin.
BlackRock's Bitcoin ETF impresses with its rapid record of reaching $84 billion in assets under management.
The weakening of the USD along with stimulus spending policies creates a favorable environment for Bitcoin to rise in price.
What is driving Bitcoin's price surge?
Industry experts confirm that institutional investment demand is exerting strong upward pressure compared to the limited daily supply, with only 450 newly mined Bitcoin.
Matt Hougan, Chief Investment Officer of Bitwise, noted that 'demand from ETF funds exceeds the supply of mined Bitcoin, causing prices to rise sharply and quickly.' A typical example is that in just one day, ETF funds purchased up to 10,000 Bitcoin, 20 times the amount of newly mined Bitcoin.
How is BlackRock's IBIT ETF making a turning point?
BlackRock's Bitcoin ETF, named IBIT, has reached an asset under management level of $84 billion in just 200 trading days, a speed that far exceeds what the GLD gold fund took 15 years to achieve similar milestones.
IBIT currently holds over 700,000 Bitcoin, about 100,000 BTC more than the nearest competitor fund, contributing to increased liquidity and driving Bitcoin's price higher.
"IBIT has become a significant milestone for institutional capital flow in the cryptocurrency market, reflecting strong confidence in Bitcoin."
Matt Hougan, Chief Investment Officer of Bitwise, 2024
What is the impact of a weak USD on Bitcoin prices?
The 11% depreciation of the USD over the past six months is a key factor pulling Bitcoin up over $15,000 since early July. The U.S. House of Representatives passing a stimulus spending package on July 3 further reinforced confidence in Bitcoin as 'digital gold.'
Moreover, rising geopolitical tensions and tariff policies are increasing the appeal of Bitcoin as a safe-haven asset.
"As the USD weakens and the economic environment becomes unstable, Bitcoin proves its role as an effective risk-limiting investment channel."
Geoff Kendrick, Head of Digital Asset Research at Standard Chartered, 2024
What does the future outlook for Bitcoin look like?
Many experts believe that Bitcoin is entering a 'transformational tension' phase, with price forecasts reaching $135,000 by the end of the third quarter and aiming for $200,000 by year-end if demand continues to exceed supply.
Matt Hougan also stated that "the gap between institutional demand and limited supply will continue to push Bitcoin prices close to the $200,000 mark this year."
The influence of major Bitcoin ETF funds can be compared.
Bitcoin ETF Fund Time reaches $84 billion Owned Bitcoin IBIT (BlackRock) 200 trading days 700,000+ BTC Record rapid growth, leading the market GLD (gold ETF) 15 years - Traditional investment target, slow growth rate
Frequently Asked Questions
What are the main factors driving Bitcoin's price increase? The rise is driven by strong institutional demand exceeding the supply of newly mined Bitcoin. Which Bitcoin ETF is having the greatest impact on the market? BlackRock's IBIT fund, with over 700,000 Bitcoin and $84 billion in assets under management, is currently the largest fund. How does a weak USD affect Bitcoin? A declining USD enhances Bitcoin's appeal as an asset that protects against inflation and geopolitical risks. How high can Bitcoin go this year? Experts predict Bitcoin could reach $200,000 if institutional demand continues to be strong. How does the geopolitical situation affect Bitcoin prices? Increasing geopolitical tensions enhance demand for Bitcoin as a safe-haven asset.
Source: https://tintucbitcoin.com/nguyen-nhan-bitcoin-tang-gia-hom-nay/
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