Bitcoin has shattered records, briefly topping $123,000 before stabilizing near $116,000 on Tuesday, a staggering leap that’s caught the eye of investors everywhere.
According to CNBC, unlike past frenzies driven by retail hype, this rally is fueled by structural demand, Wall Street’s embrace, and growing institutional conviction, alongside historic inflows into Bitcoin ETFs and emerging regulatory clarity in Washington.
A year ago, Bitcoin was trading at roughly half its current value. Now, it’s nearly doubled, reflecting a profound shift in how the market views this digital asset.
This surge kicked off with spot Bitcoin ETFs, which saw inflows of $2.7 billion last week alone. A single day recorded nearly $1.3 billion, the second-largest inflow session ever tracked.
BlackRock’s iShares Bitcoin Trust now holds almost $90 billion in assets, ranking among the top 20 ETFs nationwide. Meanwhile, U.S.-listed spot Bitcoin ETFs collectively manage over $153 billion, a remarkable jump from zero just 18 months ago.
Financial advisors, sovereign wealth funds, and corporate treasuries are diving in at a record pace. Public company holdings of Bitcoin spiked 23% last quarter to $91 billion, per Bitwise data.
Corporations like GameStop and Trump Media are treating Bitcoin as a strategic reserve asset. Trump Media, for instance, plans to acquire $2.5 billion worth of cryptocurrency.
Reverse mergers, backed by giants like SoftBank and Cantor Fitzgerald, are transforming dormant firms into Bitcoin holding vehicles. New player ProCap raised over $750 million, aiming to hold up to $1 billion in Bitcoin via SPACs.
Market dynamics are also at play. June’s options expiry cleared out selling pressure, sparking a short squeeze for traders betting against Bitcoin near the $110,000 to $120,000 range.
Bitcoin’s futures open interest hit a record above $88 billion, signaling strong institutional belief in its staying power. Ethereum’s open interest is also near all-time highs.
The Nasdaq’s record close on Monday lifted sentiment across risk assets like Ether, Solana, and XRP. Bitcoin has realigned with the Nasdaq after briefly decoupling during the ETF-driven surge.
Even retirement savers are getting in on the action. In May, the Department of Labor paved the way for 401(k) plans to offer Bitcoin ETF access, opening doors for long-term allocations.
This week, dubbed “Crypto Week” by Republican lawmakers, the House is reviewing three landmark crypto bills. These aim to split oversight between the SEC and CFTC, set stablecoin rules, and block a central bank digital currency.
The Clarity Act, a key proposal, would grant the CFTC authority over digital commodities like Bitcoin, potentially Ether, while limiting the SEC’s reach. It also seeks to enable broker-dealers to handle crypto legally, possibly easing traditional firms into on-chain finance without immediate regulatory burdens. For investors wary of government overreach, this could be a rare win for market freedom.