Bitcoin Surges Past $91,000 Amid Political Turmoil and ETF Inflows

Bitcoin’s price has exceeded $91,000 for the first time in over 50 days, driven by rising institutional interest and political factors, notably Donald Trump’s criticism of the Fed Chair. ETF inflows reached $381 million, indicating a shift from equities to cryptocurrencies. Technical indicators suggest potential price movement towards $95,000.

Bitcoin’s price has recently surged past $91,000 for the first time in 52 days, marking a significant milestone since March 2. This rally has been attributed to increasing institutional demand, as evidenced by over $381 million in inflows into Bitcoin ETFs on Monday, indicating a shift of capital from US equities towards cryptocurrencies.

The bullish momentum is bolstered by technical indicators suggesting a potential climb towards $95,000. Analysts observe a favourable move in the BTC/USD daily chart, hinting at a further rise if the current momentum persists. The convergence of technical signals and institutional interest generates a cautiously optimistic outlook for Bitcoin.

The recent price surge has been intertwined with political commentary from former US President Donald Trump, who has been vocally critical of Federal Reserve Chair Jerome Powell. Trump’s remarks alleging politicised monetary policy have injected instability into traditional markets, guiding investors towards Bitcoin as an alternative asset class.

Trump reiterated his critique at a recent press conference, stating Powell’s rate policies needed adjustment. This rhetorical escalation has caused fluctuations in the US Dollar Index, and affected US Treasury yields, subsequently supporting higher demand for cryptocurrencies like Bitcoin.

Investors have displayed renewed appetite for Bitcoin amid this turmoil, pushing the price up by over 5% in just 48 hours. Notably, the highest daily inflow into Bitcoin ETFs occurred with Ark Invest’s ARKB leading with $116 million, alongside substantial contributions from BlackRock’s iShares Bitcoin Trust and Fidelity.

The appointment of Paul Atkins as Chair of the US Securities and Exchange Commission (SEC) has further instilled optimism in the market. His advocate for a regulatory framework that nurtures innovation in digital assets may usher in heightened clarity regarding spot ETFs and token classifications, further propelling market sentiment.

Today’s Bitcoin price outlook remains bullish as it breaks past $91,000 and confirms a clear breakout from a recent consolidation phase. A technical assessment reveals robust buying momentum, with notable upward alignment in moving averages contributing to potential upward pressure. Should this trend continue, Bitcoin targets $94,000, although caution remains regarding profit-taking and support retention above $88,500, which could alter the bullish forecast.