Bitcoin’s price has rebounded to around $95,000, driven by influences from President Trump and Wall Street. Major firms like Tower Research and Citadel Securities are increasing their crypto investments. As trading conditions change under the Trump administration, Wall Street may be gearing up for a significant bitcoin rally, although recent momentum appears to be waning.
Bitcoin and cryptocurrency markets have been taking centre stage lately, especially after notable comments from U.S. President Donald Trump this year. Amidst a backdrop of what some are calling a “Federal Reserve nightmare,” attention is shifting. Trump’s influence seems to be encouraging speculation about a surge in crypto prices, prompting some analysts to issue bold forecasts that suggest significant potential gains for these digital assets.
The price of bitcoin recently saw a bounce back to approximately $95,000, recovering from a dip to $75,000 in April. This rebound drew attention to a surprising prediction from David Sacks, who serves as a crypto advisor under Trump’s administration. As bitcoin approaches critical market milestones, betting on its success seems to be the theme emerging from major Wall Street players who are positioning themselves for a potential rally buoyed by Trump’s newfound focus on cryptocurrencies.
According to an anonymous tip reported by Bloomberg, high-speed trading firm Tower Research Capital is markedly increasing its cryptocurrency investments. This follows Citadel Securities in expanding its foothold in crypto markets. A source indicated that Tower Research has enhanced its trading infrastructure and is injecting more capital into its crypto trading strategy.
There seems to be a concerted effort on Wall Street to embrace bitcoin and cryptocurrency. This shift comes at a time when the administration is rumoured to be re-opening access to cryptocurrency trading, rolling back the existing restrictions imposed during the Biden administration. With some of the biggest financial institutions managing around $10 trillion beginning to warm up to bitcoin, we might soon see investment advisers recommending bitcoin ETFs to their clients.
Notably, the dozen U.S. spot bitcoin ETFs have experienced significant inflows, amassing over $100 billion last year alone. Recent figures show that nearly $2 billion flowed into these ETFs just last week, indicating a return to growth after earlier outflows that tracked the overall upheaval in the stock market. BlackRock’s Robert Mitchnick commented that the recent influx of capital into these funds showcases a robust revival in investor interest.
Yet, despite the enthusiasm, the market has recently shown signs of cooling. Bitcoin’s sharp rise towards $100,000 did not manage to cross that notable psychological barrier. The price has increased by about 25% over the last month owing to strong ETF interests and institutional demand. However, Markus Thielen, CEO of 10x Research, noted that existing macro pressures and weak funding rates could mean that this rally is losing steam.
“There’s a consolidation forming near the $95,000 mark as traders seem to wait for new driving forces,” Thielen stated. He added that this is not the time to jump in recklessly; instead, it calls for strategic positioning with clear exposure, suggesting caution ahead even as optimism prevails in some quarters.
