Bitcoin 
$91,081 has experienced a significant price surge recently, breaking out of its narrow trading range. The cryptocurrency gained over 10% in value, peaking at USD 120,947, achieving an all-time high. Experts suggest that the upward trend might not be over yet, as there are no clear signs of market overheating.
Market Sentiment and Analyst Insights
CryptoQuant, a cryptocurrency analysis firm, mentioned that despite short-term investors realizing gains, the overall market sentiment remains composed. Their analysis attributes the current rally to Bitcoin’s evolving role in the global financial system, rather than a speculative bubble.
According to CryptoQuant analysts, “Data shows no significant overheating in the market, and a cautious atmosphere prevails.” Meanwhile, the 10X Research team noted that Bitcoin is transitioning from merely a blockchain asset to serving as a hedge against the U.S. budget deficit spending.
10X Research states, “Bitcoin has become a macro asset against uncontrolled budget expenditures.” This indicates a broader acceptance of Bitcoin as a financial instrument beyond conventional boundaries.
The Impact of ETFs and New Records
One of the primary drivers of Bitcoin’s price increase is the recent establishment of spot Bitcoin exchange-traded funds (ETFs) in the United States. These funds have gained significant market share in the cryptocurrency sector.
Particularly notable is BlackRock’s IBIT fund, which amassed $80 billion in assets under management in less than a year. This figure surpasses the record previously set by Vanguard’s S&P 500 ETF, which took 1,814 days, whereas IBIT accomplished it in just 374 days.
Moreover, the amount of Bitcoin held in the U.S. spot Bitcoin ETFs has, for the first time in history, exceeded 6% of the total supply. Currently, U.S. ETFs hold 1,268,094 Bitcoin, valued at $153 billion.
Shift in Bitcoin’s Role and Future Expectations
According to experts, the recent value surge in Bitcoin is significantly impacted by the growing investor base and the introduction of new financial instruments. The upcoming U.S. Presidential cryptocurrency policy report on July 22 and the Federal Open Market Committee (FOMC) meeting on July 30 are expected to further strengthen Bitcoin’s position in traditional financial markets.
The growth of ETFs holding Bitcoin indicates increased interest from institutional investors in cryptocurrencies. Additionally, acquisitions through U.S.-based funds might exert further upward pressure on prices in the future.
Bitcoin’s recent movement can be seen as a reflection of a paradigmatic shift in how investors and institutions view cryptocurrencies. Investors increasingly regard Bitcoin as an alternative asset for risk management, and the rising economic uncertainties worldwide may sustain this interest. While developments are ongoing, it is crucial for investors to closely monitor market conditions and assess risks and potential returns comprehensively.
