Bitcoin Hits New Yearly High and Attracts Institutional Interest
The price of Bitcoin has reached its highest level since May 2022, surpassing $35,000 during Asian trading. This surge in price has been accompanied by increased institutional interest, with four consecutive weeks of inflows into crypto products.
The Rise of Bitcoin Among Institutions
Bitcoin’s price has continued to climb, rising an additional 14.5% in the past 24 hours. Currently trading at $34,727, BTC has gained 22% compared to the same time last week. However, it is still down 50% from its peak price of $69,000 in November 2021.
Institutional Inflows and Spot ETF Expectations
Institutional investors are showing renewed interest in crypto products, with a total inflow of $66 million in the past week. Bitcoin products accounted for $55 million of these inflows. Analysts have noted that asset manager BlackRock has obtained a specific license and may start seeding its spot ETF product with cash this month.
Investor Caution and Ethereum Outflows
Despite the rise in institutional interest, CoinShares reports that the recent inflows are relatively low compared to the initial inflows following BlackRock’s announcement in June. Additionally, Ethereum products experienced weekly outflows of $7.4 million. However, total assets under management have risen by 15% since September and now amount to nearly $33 billion.
Bitcoin Leads Market Growth
Bitcoin’s surge has lifted the total market capitalization on spot markets to $1.22 trillion, its highest level since August. Altcoins have seen gains of around 5-6%, but none have experienced double-digit increases in the top 30 except for Bitcoin.
Hot Take: Bitcoin’s Resurgence Continues
Bitcoin’s price has reached a new yearly high, and institutional interest is growing. With four consecutive weeks of inflows and expectations of a spot ETF launch, Bitcoin is back in favor for institutions. However, caution is advised as the recent inflows are relatively low compared to earlier levels. Ethereum products have seen outflows, but overall market capitalization has risen significantly thanks to Bitcoin’s gains.
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