Bitcoin’s price has rebounded from a recent low, approaching $100,000 again, influenced by the Federal Reserve’s actions and potential Wall Street ETF involvement. Major financial firms are expected to engage with bitcoin ETFs soon, which could lead to substantial inflows. However, analysts remain cautious about possible market corrections in the near future.
Bitcoin seems to be on the rise again after a rocky start this month, recovering from a worrying sell-off. The cryptocurrency’s recent surge is fuelled by intriguing developments from the Federal Reserve, potentially setting the stage for a significant price shift in the crypto market. As of now, bitcoin prices have soared towards $100,000 from a dip of around $75,000 back in April, particularly as excitement surrounding bitcoin exchange-traded funds (ETFs) grows.
A recent leak has sparked concerns among establishment figures regarding U.S. President Donald Trump’s stance on bitcoin and cryptocurrency, hinting at possible disruption. Major Wall Street firms, managing assets worth about $10 trillion, are reportedly ready to engage with bitcoin this year. A note from Bitwise chief investment officer Matt Hougan suggests that four prominent wirehouses—Merrill Lynch, Morgan Stanley, Wells Fargo, and UBS—might soon start offering bitcoin ETFs to clients.
Currently, these wirehouse platforms have limited access to bitcoin ETFs for their financial advisors. However, Hougan believes a shift is imminent, predicting that by year-end, all four wirehouses will be fully operational in terms of bitcoin ETF offerings. Previously, Morgan Stanley did initiate a programme allowing select advisors to promote ETFs by BlackRock and Fidelity to clients with significant net worth.
Despite bitcoin ETFs pulling in a modest $3.7 billion so far this year compared to the record $35 billion in 2024, Hougan remains optimistic about their potential for future success, foreseeing a record-breaking inflow year. Spot bitcoin ETFs in the U.S.—which gained over $100 billion last year—have started to see inflows return, reportedly adding more than $3 billion last week, a positive shift after a short period of outflows linked to stock market instability.
With this trend of renewed inflows, bullish traders are growing increasingly confident in bitcoin’s appreciation. Market analyst David Morrison noted that the cryptocurrency is holding steady around $95,000 while eyeing the elusive $100,000 mark. He also pointed out that bitcoin’s recent movements could be reflective of broader sentiment towards risk assets in general.
Despite the positive vibes, some analysts remain cautious. They warn there is a chance the market may slide back into the mid-$80,000s. Arthur Azizov, founder of B2 Ventures, shared a bullish, though measured, outlook for bitcoin—recognising that while the cryptocurrency seems poised for new highs, market corrections are part of its growth journey. He predicts we could see a pullback into the $86,000-$83,000 range shortly, especially after a satisfying liquidity sweep at recent highs.
In summary, while optimism surrounds the capabilities of bitcoin ETFs and the overall market, caution around potential corrections remains significant and part of the larger narrative. The next few months should be interesting as we watch this volatile space unfold.
