Bitcoin's Surge Attributed to Institutional Money, Not Retail

Cosmo Jiang, a portfolio manager at Pantera Capital overseeing $3.8 billion in crypto assets, says the recent 23% weekly gain of Bitcoin is primarily driven by institutional money, not retail investors.

In an interview with CNBC, Jiang noted that 'smart money' is flooding into the space, but stopped short of predicting a specific price target for Bitcoin. He did, however, mention resistance near $80,000 and allowed for a modest pullback before reaching that level.

Jiang attributed the positioning flip from net short to long as a key factor in the market's current state. This shift carries more weight than fresh enthusiasm, he explained, as traders who had wagered against Bitcoin were forced to reverse their view and close their bets, leading some to buy into the market.

The recent rally was not spontaneous, according to Jiang, but rather driven by two key pieces of news: President Donald Trump's comments on the Clarity Act and U.S. Treasury Secretary Scott Bessent's announcement of increased long-dated bond buybacks.