Bitcoin Nears All-Time High as ETFs Drive $4.7 Billion Inflows Amid Rising Institutional Interest

Volume: 0%

Uptober is Forming Amid Rising Stablecoin Liquidity and Bitcoin Transactions

CoinDesk 20 Index: 2,668.37 +2.72%

Bitcoin (BTC): $91,632.85 +4.5%

Ether (ETH): $3,187.05 +0.7%

S&P 500: 5,985.38 -0.29%

Gold: $2,611.13 +0.02%

Nikkei 225: 38,535.70 -0.48%

Bitcoin is trading around $91,000. It bounced back after dipping just above $89,000. Right now, BTC is 2% below its all-time high of $93,445, which it hit during the U.S. afternoon on Wednesday. Despite this, it's still over 4% higher in the last 24 hours.

Bitcoin ETFs saw another $510 million in inflows on Wednesday. This brings the total for the last six days to a whopping $4.7 billion. "Bitcoin ETFs are the main driver of demand right now. They’re soaking up nearly all the selling from Long-Term Holders. CME open interest isn’t growing much, which shows this is a spot-driven rally," said analyst Checkmate in a post on X.

On the political front, the Republican party has secured a majority in the House of Representatives. This completes a trifecta after Donald Trump won the presidency and the GOP flipped several Senate seats. The House has been crucial for moving crypto legislation at the federal level, especially in the past year with multiple crypto-focused bills passed. While Republicans held a slim majority during this time, Democrats were expected to regain control in the 2024 election.

The Fairshake super political action committee, along with its affiliated PACs, supported nearly 60 House and Senate candidates in the election, with most of them winning their races.

A recent survey by digital asset bank Sygnum shows that institutions are ready to invest more in digital assets. An impressive 57% of respondents plan to increase their cryptocurrency exposure. This trend is driven by a growing willingness to take risks and long-term confidence in the asset class. The annual survey gathered insights from over 400 institutional and professional investors across 27 countries, with an average experience of over 10 years. Notably, 65% of respondents are optimistic in the long term, and 63% are considering increasing their allocations to digital assets within the next three to six months.

The chart illustrates Google search interest for the term “bitcoin” in the U.S. over the past five years. Interest has surged past levels seen in June 2022, following the Terra/Luna collapse. This sustained interest from retail investors could lead to higher volumes and prices, potentially sparking a speculative frenzy.

Source: Google Trends

- Omkar Godbole

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