Bitcoin (BTC) recently soared past the $122,000 mark, edging closely to its historic peak of $123,218. This impressive uptick is primarily attributed to substantial inflows into spot Bitcoin ETFs, increased corporate interest in cryptocurrency, and a shift towards pro-cryptocurrency regulations from government officials.
In just three days, U.S. spot Bitcoin ETFs have attracted a remarkable $773 million in net inflows, as reported by Farside Investors. Notably, BlackRock’s investment fund is now managing an astounding $80 billion in Bitcoin, closing the gap with the top gold ETF, which has over $94 billion in assets.
In a notable move within the corporate sphere, MicroStrategy, led by Michael Saylor, has indicated plans to continue purchasing Bitcoin, boosting its already significant treasury of $76.8 billion. According to Henrik Andersson, CIO at Apollo Crypto, the recent surge above $122K wasn’t unexpected after a lengthy consolidation period between $115K and $120K.
Pro-Crypto Policies Spark Renewed Investor Interest
A significant driver of this rally has been President Donald Trump’s recent executive order, which allows 401(k) retirement plans to include cryptocurrencies as investment options. This newfound flexibility may pave the way for approximately $9 trillion in retirement assets to flow into Bitcoin, potentially fueling sustained demand.
Current technical indicators support a bullish outlook. The daily RSI is positioned at 67.7, suggesting robust momentum without entering overbought conditions, while the MACD has displayed a bullish crossover.
Experts predict that if Bitcoin decisively surpasses the $123,000 threshold, it could trigger significant algorithmic buying and induce FOMO among retail investors, potentially propelling BTC into the $126,000 to $129,000 range.
Total Crypto Market Reaches All-Time High
The recent surge in Bitcoin has also bolstered the total cryptocurrency market capitalization, which has reached an impressive $4.14 trillion. Ethereum (ETH) has followed suit, breaking through the $4,300 mark for the first time since 2021, driven by $4 billion in institutional investments and the introduction of Ethereum-centric ETFs.
Despite the prevailing optimism, market sentiment remains cautiously optimistic. The Crypto Fear & Greed Index currently stands at 70/100, signaling a state of enthusiasm but staying clear of extreme euphoria. Additionally, Google search interest in Bitcoin has seen a slight uptick, indicating the potential for further retail involvement.
With strong institutional inflows, an uptick in corporate adoption, and improved regulatory clarity, analysts believe Bitcoin is set for another upward trajectory. A clean break above $123,000 could pave the way for a move towards $130,000 in the short term, with the possibility of reaching $150,000 by the year’s end if current favorable macroeconomic conditions persist.
Image credit: ChatGPT, chart sourced from TradingView.
