Bitcoin (BTC) has surged past $100,000, recovering from a 32% drop since its January peak, according to Bitfinex. This resurgence is attributed to improved macroeconomic conditions, including easing tariff tensions and a more dovish Federal Reserve stance. The cryptocurrency's performance is outpacing equities, signaling increased risk appetite in the market.
Bitfinex reports that on-chain data shows over 3 million BTC have become profitable, indicating a significant reduction in coins held at a loss. Recent ETF inflows have exceeded $920 million, further bolstering Bitcoin's positive trajectory. Bitcoin's realized cap has also reached a new all-time high.
The Federal Reserve's decision to hold steady interest rates, despite inflation and unemployment concerns, has influenced market dynamics. New Hampshire has enacted legislation allowing investments in cryptocurrencies and precious metals. BlackRock is engaging with the SEC to discuss staking features for Ethereum-based ETFs and options trading rules.
This article is based on our author's analysis of materials taken from Bitfinex.