Key Takeaways:
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Bitcoin reached a new all-time high of $ 126,200, supported by a record of $ 5.67 billion ETP flow.
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Uncertainty and geopolitical uncertainty revived the “debasement trade” narrative.
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Institutional flows are dominant as retail participation continues to decrease.
Bitcoin (Btc) Stormy at a new all-time high of $ 126,200 on Monday, following one of the strongest weeks recorded for digital assets while the Global Crypto Exchange-Traded Products (ETP) logs $ 5.67 billion in net inflows, the biggest ever weekly. Advancement reflects the return of the investor’s belief, who is —fuel through a modified faith in the “trading of debasement” as fiscal and geopolitical risks.
As mentioned in Bitwise’s Weekly Crypto Market Compass reportThe current rally rally features how weakening of Fiat confidence and increasing macroeconomic uncertainty drives a demand structure for store assets, such as bitcoin and gold.
Director and head of research André Dragosch, Senior Research Associate Max Shannon, and research analyst Ayush Tripathi emphasized that the US Dollar Index (DXY) dropped 10% year-to-date, while gold advanced 50%, exceeding 27% of Bitcoin’s 27% benefit. However, many investors today view BTC as a digital hedge that offers more asymmetry in the race against money losses.
According to Bitwise, the spot bitcoin exchange-traded funds (ETFS) led the outflow of $ 3.49 billion, followed by Ethereum’s $ 1.49 billion, and $ 685 million in ex-etereum altcoin ex-esteum products. The US Spot ETFS led the activity, along with Blackrock’s Ishhares Bitcoin Trust (IBIT) and BITB’s BitB that attracts most of the new allocation.
Meanwhile, the onchain data mentioned in the report revealed more than 49,000 BTCs retreating from the exchange of whale entities, while positive purchase and moderate action suggests a sustainable, rather euphoric, advance.
Through Q4 historical bullish and liquidity tailwinds gathering, the Dragosch and the team,
“Investors positioned on either side of the store’s debate debate may ultimately contact the same outcome, updating capital flows with digital properties.”
Related: Bitcoin Trader calls $ 124K ‘Pivotal’ while BTC is returning from the new all-time high
The fiscal fragility fuels lasting bitcoin upside down
Bitcoin advocate Paul Tudor Jones shouted a growing perspective that the US fiscal scene was the main driver of MacRO for the risk of danger. With the swelling of the federal deficit and annual interest costs set to exceed $ 1 trillion, the markets are increasingly proning prolonged financial emergence, which is the history of a tail for BTC.
Cointelegraph reported That while foreign holders retreat from the US Treasurys and the dollar weakens, the capital of the capital towards “hard assets” such as bitcoin can accelerate. Tudor’s comparison with the late-1990s cycle of the bull, noticed that while values could be curled up, the absence of euphoria and ongoing institutional flow suggests that the rally has a room to run.
In essence, fiscal destruction, Dovish policy expectations, and reducing real yields are converting to create a ripe environment for the growth of the Bitcoin structure. However, not all onchain signals are aligned with this narrative.
Bitcoin researcher Axel Adler Jr. Taught The small transaction activity, usually driven by retail businessmen, has been declining since spring 2024, even though the price of Bitcoin has risen to new highs.
The diversity between the rising price and prevention of retail participation suggested that the current advance may be unstoppable by the institution, which indicates the stress of retail under the Bitcoin’s bullish momentum.
Related: US Bitcoin ETFS Post 2nd-Highest Inflows since launch at Crypto rally
This article does not contain investment advice or recommendations. Every transfer of investment and trading involves risk, and readers should conduct their own research when deciding.
