Bitcoin prices promoted by billions of dollars in traditional money coming from Wall Street
- Bitcoin has skyrocketed by more than 25% since the start of the year.which hit a record high of over $122,000, fueled a massive influx from Wall Street, including $85 billion from the new Bitcoin ETF as before last year. Traditional capital inflows reduce Bitcoin volatility. The decline in the value of the US dollar is also helpful.
Since its low in April, the stock market has risen robustly worldwide, offering historic bull gatherings. The Broad Market S&P 500 has grown by 6.58% since the start of the year. But it looks weak next to Bitcoin. This has brought a new record high yesterday, exceeding $122,000 per coin. Bitcoin has dropped by more than 2% this morning when speculators lock their profits, while cryptocurrencies are still up by more than 25%.
Interestingly, research shows that it hit the milestone with lower volatility than historical records. German banks.
Of course, there are many reasons for this. Of course, it includes regulatory support for the Trump administration’s code. However, the root cause of the rise of Bitcoin is the old-fashioned Fiat cash from the traditional financial sector, with DB’s Marion Raboure and Camilla Siazon. luck.
The total is incredible.
- Inflows from new Bitcoin ETFs provided by Wall Street Fund in 2024 were $35 billion.
- This year, there has been an influx of $50 billion so far.
- “Last Thursday alone we saw an influx of $1.7 billion a day into the US Bitcoin ETF,” DB analysts say.
- BlackRock’s Ishares Bitcoin Trust alone holds $80 billion. It has only been around for 18 months.
- It took SPDR Gold Shares ETFs to reach that level 15 years.
The steady inflow of traditional money has reduced Bitcoin volatility. This is an asset that has lost most of its value on multiple occasions. “This rapid increase due to the influx of ETFs helped Bitcoin liquidity, keeping crypto trading within a relatively tight range compared to the past few years,” says Laboure and Siazon.
There is another factor in fueling Bitcoin. This is a decrease in the US dollar. The dollar has lost almost 10% of its value on foreign currency this year at the DXY index. Investors are trying to store cash elsewhere. “As the US signed the law this month and is effectively locked into a 6.5%-7% deficit of GDP for the next few years, we have begun to witness investors pushing investors into alternative assets like gold and Bitcoin,” the memo says.
Here is a snapshot of the action before the New York Opening Bell:
- Consumer Price Index update It is scheduled for 8:30am (ET). The current rate is 2.4%, with analysts expecting a 0.3% increase to 2.7%.
- S&P 500 Futures Yesterday, pre-marketing gains of 0.31% and underlying index rose 0.65%.
- Hong Kong Hang Sen This morning it increased by 1.6%.
- Japan Nikkei 225 Increased by 0.55%.
- Stoxx Europe 600 0.3% has been added for early trading.
- UK FTSE 100 It was a flat early trading session, but for the first time I was ready to surpass the 9,000 level.
- Bitcoin $116K sinking 2.56%.