Bitcoin continues to rise, and prices rise to around the $80,000 threshold. The main driving force behind this round of rebound in the market has been an improvement in the risk preferences of off-the-shelf bitcoin ETF financial flows in the United States and the short-term backwardness of US debt.
ETF Flow-led buyout
By Tuesday, bitcoin had increased by 3.1 per cent, reporting USD 79,739. The Ether House is also well synchronized, with the latest increase of 2%, reporting $2,494.
The United States current bitcoin ETF recorded a combined net inflow of $1.92 billion last week, up to the largest single-week inflow since last October. Last October, bitcoin touched the height of the previous cycle.
According to some agencies, the re-inflow of funds into ETF indicates that institutional needs are being restored. In addition to bitcoin, ETF's financial performance and trade activity are also improving, and the increase in the distribution of stable currency is also seen as one of the signs of a rebound in the encrypted market.
U.S. debt working low return
Another factor driving the current round is from the United States Treasury debt market. The United States Department of the Treasury announced that it would increase its long-term public debt purchases, an initiative that at one time depressed the rate of return and boosted the demand for risky assets.
At the same time, market concerns about inflation and government debt are still on the rise, and some of the funds are refocusing on the supply of relatively limited assets. Bitcoin is thus again seen by some investors as representative of scarce assets.
The options market shows a better mood.
According to the research institute Fundstrat, an empty buyout last week might mean that the round was not just a short-line rebound. This is based on increased ETF financial flows, increased transactions and increased exposure of investors to longer-term deployments in options markets.
Unlike previous rebounds, recent options trading is no longer focused on short-term increases in bets, but more on longer-term contracts. This usually means that investors have improved their judgement about the duration of the increase.
However, there is still disagreement in the market as to whether this breakthrough will continue. According to BTIG, Bitcoin has experienced a long period of downturn since last October, and similar speed surges occurred in January 2023, but then the increase slowed.
It is noteworthy that this round did not rely on Strategy ' s new purchase. Strategy, the world's largest listed company with bitcoin, has not increased for two weeks in a row. Market purchases may be further strengthened if they are subsequently resumed and ETF demand remains strong.