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Institutional Demand, Rising Appetite for Risk Assets May Push Bitcoin to All-Time Highs

Bitcoin's momentum shows no signs of slowing as institutional demand and a growing appetite for risk assets could propel the cryptocurrency to breach its all-time highs of $74,000 as early as next week.

Bitcoin's momentum shows no signs of slowing as institutional demand and a growing appetite for risk assets propel its price.
Credit: Foretoken Media 2024

NEW YORK – Bitcoin (BTC) demonstrated remarkable resilience, pulling back towards $65,000 on Thursday but quickly regaining its footing above $66,000 by Friday morning. According to Alex Kuptsikevich, a senior market analyst at FxPro, Bitcoin's ability to recover swiftly indicates strong support from global risk appetites.

Institutional Inflows Drive Bullish Outlook

Several market analysts, including those from Singapore-based QCP Capital, have set bullish price targets for bitcoin. The recent surge in U.S.-listed spot exchange-traded funds (ETFs) tracking bitcoin has been a significant driver of this optimistic outlook.

Over four consecutive days, these ETFs logged a total of $257 million in net inflows, marking a sharp turnaround from previous weeks when some of the largest ETFs experienced zero inflows.

Notably, BlackRock's IBIT received $94 million in inflows on Thursday, the highest among its peers, while GrayScale's GBTC, which had mostly seen outflows since January, recorded over $4.6 million in inflows. These inflows underscore the growing interest and confidence among institutional investors in Bitcoin's potential.

Regulatory Filings Highlight Bitcoin's Institutional Demand

Regulatory filings from earlier this week revealed that several prominent funds, including Millennium Management and Elliot Capital, have invested millions in bitcoin ETFs. This disclosure further solidifies the digital currency's demand and the belief that institutional players are increasingly viewing bitcoin as a valuable asset in their portfolios.

Moreover, Morgan Stanley disclosed a significant $269.9 million investment in Grayscale's GBTC, reinforcing the trend of institutional adoption. This surge in institutional interest has been fueled by the softer-than-expected US Consumer Price Index (CPI) data, which triggered a breakout for bitcoin, allowing it to regain the $66,000 mark and post its biggest single-day gain since March.

Broader Market Trends and Implications

While bitcoin continues to attract significant attention, other major digital assets like Ether (ETH) are also showing potential. According to a research report by Coinbase, Ether's position as the center of DeFi is unlikely to be displaced, with meaningful growth in staking and Layer 2 innovations contributing to its potential upside.

Additionally, the Fantom blockchain's FTM token has emerged as one of the best-performing non-meme tokens in the past week, thanks to the rollout of its Sonic upgrade and increased total value locked on the protocol. This upgrade is expected to significantly enhance transaction speeds, further boosting FTM's appeal among investors.


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