Bitcoin Approaches Milestone of $100,000 Amid Strong Institutional Demand

Bitcoin’s price has surged to $99,434, nearing $100,000 for the first time since early February. The increase follows strong institutional demand, largely driven by BlackRock’s IBIT ETF attracting $5 billion in inflows. However, retail interest remains weak, as evidenced by low search interest and stagnant performance in alternative cryptocurrencies.

Bitcoin, the leading player in the cryptocurrency world, is currently experiencing a price surge, hitting a notable intraday high of $99,434 on the Coinbase exchange. This marks its highest level since February 21, bringing it tantalisingly close to the $100,000 milestone for the first time since February 7. The ongoing bullish trend seems to stem from strong institutional interest, particularly linked to the success of BlackRock’s iShares Bitcoin Trust ETF (IBIT).

In fact, the IBIT has seen inflows for 17 straight days, resulting in an impressive $5 billion influx in just a matter of weeks. This kind of robust demand from institutions indicates a shift in who’s investing in Bitcoin, as highlighted by Brown University’s recent announcement that it has become the first Ivy League institution to hold an IBIT position. It’s a significant endorsement of cryptocurrency in the academic sphere.

However, amidst this price rally, it’s interesting to note that consumer interest seems to be lagging. According to Bitwise CEO Hunter Horsley, Bitcoin is generating minimal buzz in Google searches, suggesting that retail investors are still mostly sitting on the sidelines. This lack of retail enthusiasm is mirrored in the performance of alternative cryptocurrencies, which have been lacklustre in comparison. Bitcoin’s dominance in the market is, however, reaching new heights, edging towards the 70% mark.

Currently, Bitcoin’s market capitalisation is close to $2 trillion, and it’s even poised to outstrip the retail giant Amazon soon. In a move that could further impact crypto adoption, two states, New Hampshire and Arizona, have recently enacted strategic Bitcoin reserve bills. Many other states in the U.S. are contemplating similar legislation, signalling a growing recognition of cryptocurrencies at the state level.

Despite this momentum, it remains to be seen if Bitcoin can maintain its upward trajectory and break its previous record high of $108,786, set on January 20. The overarching question now is whether institutional buying can sustain this rally, despite a significant dip in retail demand. The market’s next moves will be closely watched as we head further into the month.