Bitcoin’s price action continues to hold above the $95,000 level, although altcoins are starting to show much better upside momentum. Tuesday ended with Bitcoin just under $95,500 after touching an intraday high of around 1% increase in price and hitting resistance there. Latest data underscores the inflow frenzy into Bitcoin ETFs, led by Blackrock’s IBIT, which further adds to the overall positive sentiment. The overall cryptocurrency market is booming. The catalyst for this incredible expansion is advancements in the world of tokenized assets and expectations of favorable changes in Federal Reserve policy.
ETF Demand Drives Bitcoin Market
BlackRock’s IBIT ETF has seen phenomenal growth as well. It hit $970 million in inflows in a single day, which pushed it over $1 billion total! Since April 22, IBIT netted over $4.5 billion in net inflows. This strong performance has propelled IBIT to control 51% of the US spot Bitcoin ETF market, with over $54 billion in assets under management, marking significant institutional interest in Bitcoin.
CHF from April 14 has been a Bitcoin ETF buying spree across the eight consecutive trading days. This continued demand is a key indication of the increasing investor confidence in Bitcoin as a maturing asset class. Even more encouragingly, traditional finance institutions are increasing their Bitcoin exposure through investments in ETFs. This step further legitimizes the digital asset and drives home its continued adoption by the mainstream investment community.
Market Dynamics and Altcoin Performance
As Bitcoin prices remain largely stable, other cryptocurrencies such as Ethereum and Dogecoin have been making promising gains. Not all cryptocurrencies declined – Bitcoin rose 0.6%, with Ethereum and Cardano both up 2%. Bitcoin Cash (BCH) climbed 6%, the biggest top 20 gainer. This amazing rally has deepened the chasm in how much different industries are thriving – or not, in this case.
The illiquid supply of Bitcoin has climbed to 63.49%, meaning a greater portion of holders have taken long-term positions. This implies a certain level of confidence in Bitcoin’s long-term prospects—even as the price fluctuates, investors are more reluctant to liquidate their assets.
Economic Factors and Market Outlook
Wednesday morning’s JOLTS report confirmed that US job openings have finally fallen sharply. This unexpected decline has fueled speculation for potential interest rate cuts by the Federal Reserve. Such a move would be a big positive for Bitcoin and all risk assets. Crypto economy economist Alex Kruger previously pointed out the JOLTS data as a short-term positive Bitcoin catalyst.
BTC fundamentals have turned bullish, not a bad setup to break all time highs. - Willy Woo (@woonomic)
The total market cap of the larger crypto space now tops over $3.1 trillion, a sign of positive growth and greater recognition. Hyperliquid, a Real World Asset protocol, had an 18.4% surge, indicating increased demand for such tokenized instruments in the market. This illustrates the growing use cases and applications of blockchain technology beyond the scope of cryptocurrency.
