Bitcoin Reaches New Highs as ETF Inflows Surge

Bitcoin has reached a remarkable all-time high of over $117,000 early on Friday morning, driven largely by increased institutional interest and positive developments within the industry. Over the past 24 hours, the leading cryptocurrency saw a 5.5% jump, hitting $117,176, while Ether surged 7.3% to reach $2,981. Jeff Mei, COO of crypto exchange BTSE, remarked, "Bitcoin reaching another all-time high signals that the industry is on the verge of a major bull run." Meanwhile, Vincent Liu, CIO of Kronos Research, noted that stable macroeconomic conditions and heightened institutional adoption are rekindling interest in Bitcoin. Liu emphasized that this trend reflects growing confidence in Bitcoin as a regulated, long-term asset akin to gold. He cautioned that strong institutional demand could persist unless macroeconomic uncertainties surrounding the inflation data lead to profit-taking. The cryptocurrency market is experiencing significant institutional demand, as evidenced by Bitcoin exchange-traded funds (ETFs) recording nearly $1.2 billion in inflows on Thursday — the second-highest daily inflow since their inception. Research analyst Min Jung from Presto Research explained, "The surge in inflows into spot Bitcoin ETFs appears to be driven by renewed expectations of U.S. interest rate cuts and an increase in institutional demand." She added, "More companies are following suit with their asset allocation strategies. The growing base of demand and improved institutional access due to ETF approvals have contributed to Bitcoin's rise to new heights." Despite ongoing short-term uncertainties, like potential tariff risks, several positive factors are set to support growth in the crypto sector. Jung further stated, "Looking forward, while short-term risks persist, we believe the beginning of a rate-cutting cycle and increasing institutional adoption will create strong tailwinds, indicating that demand for Bitcoin ETFs will remain healthy in the medium term." Additionally, Nick Ruck, director at LVRG Research, highlighted the importance of recent regulatory changes. He explained, "New regulations such as the GENIUS Act and the modification of a key tax rule for crypto brokers have intensified institutional interest in Bitcoin and major cryptocurrencies by gradually eliminating costly barriers and legal complexities from traditional financial systems." *Disclaimer: The Block is an independent media outlet offering news, research, and data. As of November 2023, Foresight Ventures is a principal investor in The Block, which continues to operate independently to provide objective and timely information about the crypto industry. *