Bitcoin Surges Above $80,000 on Institutional Inflows
Bitcoin broke above $80,000 due to inflows from institutional investors and exchange-traded products (ETPs). K33 noted that Bitcoin ETPs recorded their biggest daily net inflow since November 2024.
The market remains uncertain about the rally's staying power. K33 said Bitcoin has likely already passed the low of this market cycle, citing a limited decline in both depth and duration compared to previous bear markets.
Changes in the US regulatory environment have also been cited as a bullish factor by Steven Coltman, head of macroeconomics at 21Shares. He mentioned the SEC's exemptive relief related to trading in tokenized assets, along with follow-up rulemaking by the Commodity Futures Trading Commission.
Nexo took a more cautious stance, citing weaker trading volume and narrowing market breadth. However, they acknowledged that inflows through spot ETFs are a positive sign, but require further confirmation for a sustained rally.