The leading cryptocurrency, Bitcoin, soared to $110,260 later on Monday, June 9, shedding the selling pressure from the previous week and rising over 4% in the past 24 hours. This means Bitcoin is only 2% below its all-time high, supporting a broader market recovery led by Ether. The total amount of open futures positions increased by about 6%, reaching $154.8 billion, with the liquidation amount of leveraged positions exceeding $445 million, of which $204 million came from Bitcoin positions.
Analysts highlight three key factors driving this price surge: reduced regulatory uncertainty, sustained institutional demand, and enhanced liquidity.
Regulatory clarity acts like a strong wind.
The chairman of the U.S. Securities and Exchange Commission (SEC), Paul Atkins, emphasized the importance of self-custody and clear rules for DeFi protocols in the cryptocurrency space. This message from regulators reinforces the market's view that 'the era of prohibitive regulation is coming to an end.'
Washington's increasingly positive attitude toward cryptocurrency extends beyond U.S. borders, as global regulators often imitate American practices. This optimistic environment favors large capital entering the market. Therefore, in this environment of reduced uncertainty, risk appetite has increased, and demand for Bitcoin and cryptocurrencies remains strong.
Institutional demand reduces exchange supply.
The rapid growth of spot Bitcoin ETFs has led to a swift retraction of exchange supply. These investment vehicles broke through the $70 billion asset threshold in record time, opening doors for mainstream institutional capital.
Under strategic guidance, many companies have adopted Bitcoin as a financial asset for cash management, reducing the Bitcoin inventory on exchanges and creating upward pressure on prices. This phenomenon has drawn attention as supply decreases and demand expands.
Macroeconomic uncertainty increases liquidity.
The historic debt levels of the U.S. economy and short-term uncertainty are paving the way for global liquidity to shift toward risk assets. Bitcoin, hailed as a 'digital safe haven,' is in line with this trend, technically supported by the 'golden cross' of the 50-day and 200-day moving averages, which bolsters Bitcoin's price increase.
The continuous growth of liquidity has accelerated investors' search for safe havens. As the gold market stagnates and the stock market seeks direction, Bitcoin rose 4% in a short time, refreshing the market's perception of 'high risk, high return.'