Wall Street is ramping up investments in Bitcoin and cryptocurrencies as prices rebound, partly due to President Trump’s renewed interest. Major firms like Tower Research are increasing their allocations amid predictions that Bitcoin ETFs will become mainstream for financial advisors. However, recent market momentum shows signs of fading, leading analysts to caution traders to strategically position themselves.
This year has marked a significant change in the financial landscape as Wall Street quietly prepares for a major upswing in Bitcoin and cryptocurrency, stemming partly from U.S. President Donald Trump’s renewed focus on these digital assets. After experiencing dips, Bitcoin prices have recently recovered to approximately $95,000, previously plummeting to around $75,000 in April. David Sacks, known as Trump’s cryptocurrency advisor, surprised many with a bold prediction about Bitcoin’s future.
Behind this bullish sentiment, a leak has surfaced indicating that major Wall Street firms are betting on a surge in Bitcoin prices—fuelled in part by Trump’s policy changes. Reportedly, high-frequency trading giant Tower Research Capital is joining Citadel Securities in ramping up its investments in cryptocurrencies. An anonymous source cited by Bloomberg indicated that Tower Research has increased capital for its crypto trading strategies and enhanced its market-making capabilities.
The Trump administration appears poised to facilitate easier access to Bitcoin trading and other crypto avenues, effectively rolling back restrictions imposed during Biden’s tenure. Predictions suggest that Wall Street, with trillions of dollars under its management, will soon embrace Bitcoin, allowing financial advisors to recommend Bitcoin ETFs to their clients for the first time.
Interestingly, U.S. spot Bitcoin ETFs witnessed phenomenal growth, garnering over $100 billion in assets last year. Just last week, they pulled in nearly $2 billion, according to insights from SoSoValue. BlackRock’s Robert Mitchnick noted that the revival in inflows signifies a strong comeback for the market, shared during a panel discussion regarding Bitcoin and crypto.
Even with these optimistic trends, Bitcoin’s impressive rally seems to be losing steam lately. The recent surge, which nearly peaked at $100,000, could not maintain the momentum. Markus Thielen, CEO of 10x Research, highlighted that the cryptocurrency had gained 25% in just a month, thanks to increased ETF inflows and institutional investments. However, he also noted that challenges like weak funding rates and heightened macroeconomic pressures could be indicators of a fading bullish run.
Thielen further pointed out that a consolidation phase is forming around the $95,000 mark. He urged traders to exercise caution and consider strategic positioning rather than diving in recklessly, as the market awaits new, significant catalysts that could sway prices again. This evolving scenario clearly illustrates the dynamic interplay between political action and market reactions in the crypto realm.
