- BTC’s price appreciation and trading volume have predominantly occurred during U.S. market hours.
- The surge in BTC activity was particularly pronounced in the United States following BlackRock’s submission of a spot BTC exchange-traded fund filing.
Investors from the United States have been heavily investing in Bitcoin (BTC) as institutional activity gains momentum, leading to the recent surge in the value of the largest cryptocurrency by market capitalization.
According to a report by crypto analytics firm K33 Research, BTC’s price appreciation and trading volume have predominantly occurred during U.S. market hours, significantly bolstering BTC’s overall strength. With an impressive year-to-date surge of 85%, as Crypto News Flash data reported, Bitcoin has outperformed most of the cryptocurrency market.
This significant price movement coincides with the increased participation of influential financial institutions such as BlackRock, Fidelity, and Citadel in Bitcoin. Their growing involvement has ignited optimism among investors, further contributing to Bitcoin’s upward trajectory.
Under intensifying regulatory scrutiny, smaller cryptocurrencies have encountered difficulties as they face questions regarding their status as unregistered securities. Consequently, trading platforms have taken precautionary measures by limiting the availability of popular tokens to mitigate potential risks.
Bitcoin Daily Analysis
Last month, Bitcoin surpassed the $28,000 mark, but afterward, its price remained relatively stagnant for several weeks, displaying minimal fluctuations. Consequently, this period of stability prompted short-term and medium-term accumulation by hodlers, contributing to a steady increase in buying activity. As a result, the price successfully surpassed the psychological resistance level of $30,000.
Furthermore, the recent surge in institutional interest, partly triggered by Blackrock’s submission of a Bitcoin-ETF proposal, has generated a positive sentiment throughout the cryptocurrency market. Coupled with the ongoing trend of short-term accumulation, this factor has played a role in sustaining Bitcoin’s price above the $30,000 threshold.
According to a recent report from asset management firm CoinShares, digital asset funds experienced a significant inflow of $199 million last week, marking the highest inflow in nearly a year. Among these funds, those focused on Bitcoin accounted for 94% of the total inflows.
This surge in investment activity signifies a crucial turning point in the institutional adoption of cryptocurrencies, as highlighted by Samir Kerbage, the Chief Investment Officer at Hashdex, a crypto asset management firm.
Kerbage stated, “The current institutional interest we are witnessing is far from the opportunistic FOMO [fear of missing out]we have seen in the past that can push prices up in the short term.”
Bitcoin’s Rally Independent of U.S. Equity Markets
Since reaching its low point of around $16,000, Bitcoin (BTC) has witnessed cumulative gains of approximately 30% during U.S. market hours, surpassing the performance of Asian and European trading sessions. Notably, the surge in BTC activity was particularly pronounced in the United States following the submission of a spot BTC exchange-traded fund filing by BlackRock, a prominent asset management company, on June 14.
The recent rally of Bitcoin has coincided with its detachment from the performance of U.S. equity markets, including indices like the S&P 500 and Nasdaq. The 30-day correlation between Bitcoin and these indices turned negative last week, marking the first instance of such divergence since January 2021.
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