Bitcoin has seen a remarkable recovery this month, climbing towards $100,000 from lower April prices, driven partly by Federal Reserve influences and anticipated trends in Bitcoin ETFs. Major Wall Street firms may soon start facilitating Bitcoin ETF investments for broader audiences, suggesting a promising future for the crypto market amid cautious optimism and potential minor corrections ahead.
In a surprising turn of events, Bitcoin has bounced back this month, recovering from a potential price crash. This resurgence has been bolstered, quite interestingly, by actions from the Federal Reserve, which seems to be setting the stage for a crypto market comeback. A strong keyword lighting the discussions lately is the possibility of a Bitcoin exchange-traded fund (ETF) boom, especially as whispers of Wall Street giants’ anxiety about Donald Trump’s plans for crypto come to light.
Bitcoin’s price has notably surged, heading towards an eye-popping $100,000, a significant jump from its lows of around $75,000 seen in April. Analysts have pointed to what’s been called a “geopolitical fragmentation megaforce” shock by the ETF powerhouse, BlackRock. The current speculation suggests that major financial institutions managing a staggering $10 trillion could start embracing Bitcoin this year, marking a significant shift from previous hesitance.
Matt Hougan, chief investment officer at Bitwise, expressed optimism that the major four wirehouses — Merrill Lynch, Morgan Stanley, Wells Fargo, and UBS — will pave the way for their advisors to facilitate Bitcoin ETF investments by year’s end. Currently, these firms have largely restricted access to Bitcoin ETFs, but Hougan feels the tide is turning. He remarked that there’s potential for all four to be “open for business” regarding Bitcoin ETFs by the end of this year.
Previously, these wirehouses had limitations on their financial advisors, impacting their ability to introduce Bitcoin ETFs. Last year saw Morgan Stanley allowing its advisors to present Bitcoin ETFs from BlackRock and Fidelity, but only to higher net-worth clients. Hougan predicts that access will broaden to more investors by 2025.
Interestingly, Bitcoin ETFs in the U.S. have already amassed over $100 billion in assets last year. In a more recent, hopeful trend, these ETFs saw inflows exceeding $3 billion last week, suggesting a positive turnaround after facing outflows that echoed the broader stock market’s bumps and dips. This resurgence in inflows is boosting confidence among traders who speculate that Bitcoin’s price may climb even higher.
David Morrison from Trade Nation is optimistic. He highlighted Bitcoin’s recent stability around $95,000 and noted its proximity to the coveted $100,000 mark. He likened Bitcoin’s rebounding momentum to a reflection of the risk sentiment across asset classes. Meanwhile, amidst this bullish sentiment, there’s some caution as traders brace for possible corrections, pulling back to the mid-$80,000 range.
Arthur Azizov, the founder of B2 Ventures, echoed this bullish yet reserved outlook. He emphasised that while Bitcoin appears to be pushing towards new heights, small pullbacks shouldn’t be dismissed as they often occur naturally during growth phases. He projects that minor corrections could see Bitcoin pull back into the $86,000 to $83,000 regions, further reflecting typical market behaviour during upward trends.
