Bitcoin surges past $96K as Wall Street firms like Tower Research and Citadel ramp up their crypto investments. Trump’s renewed embrace of Bitcoin and easing regulations have spurred institutional interest, with Bitcoin ETFs seeing nearly $2 billion in inflows last week. Financial advisors may soon be able to recommend Bitcoin, potentially opening a new floodgate of investment into the cryptocurrency.
As of Wednesday morning, Bitcoin (BTC) has been making waves, trading over $96,000 which is just shy of its previous high. It’s up nearly 2% in the last 24 hours as it recovers from a dip earlier in April that saw it at around $75,000. On Tuesday night, Bitcoin briefly peaked over $97,000, suggesting it is gearing up to challenge the pivotal $100,000 mark, thanks in part to renewed interest from institutional investors and some political changes.
A recent leak reported by Bloomberg highlights that heavyweights in high-frequency trading, namely Tower Research Capital and Citadel Securities, are quietly increasing their stakes in cryptocurrency. Tower Research has stepped up its capital commitment to crypto, enhancing its market-making capabilities. Citadel, too, is ramping up its digital asset purchases, aiming to get ahead of this growing trend in crypto.
The renewed optimism surrounding cryptocurrency correlates with changes in the political landscape, specifically under the Trump administration. The rolling back of certain Biden-era restrictions on cryptocurrencies has paved the way for a more favourable environment for digital assets. In fact, insiders are suggesting that Trump’s positive stance on Bitcoin could reinvigorate an institutional bull run that had lost steam earlier this year.
Quite notably, Bitcoin ETFs are seeing significant capital inflows. Data from SoSoValue indicates that these funds attracted nearly $2 billion last week alone, a drastic shift from the outflows that were previously seen during broader stock market turmoil. A notable player in this surge is BlackRock’s iShares Bitcoin Trust (IBIT), which reported an intake of over 5,600 BTC, valued at over $530 million, on May 6 alone. In total, IBIT has absorbed upwards of $4.5 billion in just two weeks.
What’s perhaps more impactful is the anticipated shift among Wall Street asset managers. Those managing around $10 trillion in assets might soon be able to officially recommend Bitcoin ETFs to clients. This change would set a historic precedent, allowing financial advisors to incorporate Bitcoin into traditional portfolios, opening the floodgates for substantial long-term investment.
Bitcoin is currently experiencing a resurgence that seems to be fueled by more than mere speculation. Institutional funding, a shifting regulatory landscape owing to Trump’s policies, alongside technological upgrades from major trading firms, are all contributing to this robust environment. With sizeable ETF inflows, growing committed trading, and pivotal developments on the advisory front, things may be aligning for what could become a significant breakout for Bitcoin. The real test remains how the Federal Reserve will respond next, potentially leading to even greater market dynamics.
