The record rise in Bitcoin (BTC) prices may not yet be a speculative frenzy; it could be a strategic repositioning.
Ark Invest, led by famous American investor Cathie Wood, has published a new report examining Bitcoin's recent rise. The institution noted that despite Bitcoin surpassing the $112,000 level with an 11.1% increase in May, it still does not carry a 'manic' atmosphere, emphasizing that there are significant economic factors behind the rise.
According to the report, Bitcoin not only outperformed traditional assets like gold but also gained strength during a period when the fundamental pillars of the US consumer economy, such as housing and automotive, weakened. On the housing side, sellers outnumbered buyers, and vehicle sales sharply dropped from 17 million to 15.6 million in May. This scenario is causing investors to shift towards more resilient and alternative assets.
Highlighting that there was an influx of $5.5 billion into spot Bitcoin ETFs in May, Ark pointed out that this figure is significantly higher than that of gold ETFs, which experienced sharp declines during the same period. This indicates that investors view Bitcoin not just as a speculative tool but also as a 'calculated refuge' in the face of economic tensions.
No bubble yet
The most striking part of the report is that Bitcoin's current rise is far from the 'bubble' levels seen in previous cycles. Ark Invest stated that unrealized profits are still at low levels, indicating that mass profit-taking has not yet begun in the market and that there could be further potential in prices.
The shift of capital to alternative assets amid economic turbulence suggests that Bitcoin is not just experiencing a temporary rise but is in a longer-term transformation process.