Digital currency Bitcoin reaches new peak of $97,000, marking its highest value since the February adjustment.
Cryptocurrency Soars: Bitcoin Smashes $96,000, Leaving April with a 28% Gain
After briefly dipping to $75,000 in April, Bitcoin has climbed back up and crossed the $96,000 mark as we kick off May. This breathtaking record is the highest Bitcoin has reached since its significant fall in February.
The Lowdown:
- Bitcoin experienced a 28% surge from its April dip and a 21% rise from its February dip.
- Buoyant institutional investments and ETF inflows have underpinned the price rise.
Financial experts contend that Bitcoin has transformed from a speculative investment to a core component of institutional portfolios. Ryan Yoon, head of research at Tiger Research, asserted, "Bitcoin's recent price escalation suggests a telling indication of long-term momentum."
Yoon further suggested that BTC is no longer confined to speculative investments but has become indispensable for institutional investors' portfolios.
Institutional Tide Driving the Waves
Yoon emphasized the pivotal role of consistent buying by companies like Square, which made a whopping $1.4 billion purchase just last week, close to its limit for share buybacks. Metaplanet, a Japan-based company, has amassed a staggering $481 million worth of Bitcoin so far and plans to break into the U.S. market this week.
These acquisitions, combined with persistent ETF inflows, suggest sustained institutional interest, according to analysts.
Will Bitcoin Part Ways with Risky Assets?
Andrew Lawrence, co-founder of Funkybit, proposed, "Bitcoin has started to decouple from other risky assets, with a rebound from $75,000 and climbing."
Lawrence anticipates higher prices in the current unstable global economy. Yoon also pointed out the psychological impact of the $100,000 threshold, boosting investor sensitivity and accelerating accumulation.
Volumes Skyrocketing
As of the time of writing, Bitcoin is trading around $97,124. Daily trading volume has ballooned from $23 billion to $30 billion, symbolizing growing interest in the market.
If Bitcoin manages to maintain its upward trend, it could challenge the $100,000 level in the coming days. Institutional interest, ETFs, and escalating volumes appear to be the pillars supporting this climb.
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- Financial experts like Ryan Yoon from Tiger Research believe that Bitcoin has evolved from a speculative investment to a crucial part of institutional portfolios, as indicated by its recent price surge.
- Bitcoin's price escalation, combined with consistent buying from companies like Square and Metaplanet, along with persistent ETF inflows, suggests that institutional interest in Bitcoin is showing no signs of slowing down.
- Analysts, such as Andrew Lawrence of Funkybit, predict that Bitcoin could continue its upward trend, possibly challenging the $100,000 level due to its increasing decoupling from other risky assets and the potential psychological impact of reaching the $100,000 threshold.
- With daily trading volumes ballooning from $23 billion to $30 billion, it's clear that there's growing interest in Bitcoin as an investment, with technology playing a significant role in driving this excitement in the finance industry.
