Bitcoin is gaining momentum, now trading at $93,704, up 6.39% in a week. The Federal Reserve’s warnings about dollar weaknesses are pushing investors toward Bitcoin, with a record $3.4 billion invested in crypto products last week. Institutional interest is rising, led by BlackRock’s new Bitcoin ETFs, indicating a shift towards digital assets amid global uncertainty.
Bitcoin is making waves today as it inches closer to the $100,000 mark, currently trading at $93,704. This follows a surge of 6.39% over the past week after concerns about potential crypto contagion emerged. The uptick in Bitcoin’s price coincides with recent warnings from the Federal Reserve, signalling that the U.S. dollar could be in for a significant drop.
The Federal Reserve has been working to maintain a robust dollar, but increasing pressure from political figures like former President Trump and shifts in global trade regulations are putting strain on its value. Analysts at Deutsche Bank have signalled that conditions are ripe for a substantial downturn in the dollar, amidst concerns of market instability due to rising uncertainties. Goldman Sachs echoed this sentiment, stating that the dollar’s weakness is likely to persist for the foreseeable future, according to a recent Forbes report.
In light of these developments, there’s been a noticeable shift among investors towards Bitcoin. In the past week alone, approximately $3.4 billion was channelled into cryptocurrency investment products, notably Bitcoin exchange-traded funds (ETFs). This influx marked one of the busiest weeks for crypto investments, as reported by CoinShares.
James Butterfill, CoinShares’ research head, suggested that fears surrounding tariffs and a devalued dollar are driving investors toward Bitcoin as a safe haven. He stated, “We believe concerns over the tariff impact on corporate earnings and the dramatic weakening of the U.S. dollar are the reasons investors have turned towards digital assets.”
Moreover, institutional interest in Bitcoin is growing. BlackRock, the largest asset management firm globally with oversight of more than $10 trillion, is paving the way in this area by launching Bitcoin ETFs. Jay Jacobs, who leads the thematic and active ETFs at BlackRock, pointed out that the world is entering an era of “geopolitical fragmentation,” which enhances Bitcoin’s status as an asset untethered to any singular nation.
He also noted that Bitcoin has started behaving more like an independent asset, diverging from its previous correlation with tech stocks. In a notable change of perspective, BlackRock’s CEO Larry Fink acknowledged that he had misjudged Bitcoin in the past and now refers to it as “digital gold.”
As the dollar flounders and international tensions heighten, investors are increasingly gravitating toward Bitcoin. Many analysts are suggesting that a new all-time high for Bitcoin could be just around the corner, perhaps sooner than we think.
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