- Bitcoin jumped more than 25%Reaching record heights greater than $ 122,000, fed by massive Wall Street, including 85 billion dollars of new ETF Bitcoin in the past year. The influx of traditional capital also reduces the volatility of Bitcoin. The drop -down value of the US dollar also helps.
Around the world, from the low April, the stock markets have increased solidly, offering a historic bull rally. The large S&P 500 market increases 6.58% up to date. But it seems weak next to Bitcoin, which made new records yesterday, in maze more than $ 122,000 per room. Bitcoin is down more than 2% this morning while speculators lock their earnings, but cryptocurrency is still up more than 25% year.
Interestingly, he crossed this milestone with lower volatility than his historical file, according to research by Deutsche Bank.
There are of course a lot of reasons for this, including the regulatory support of the Trump administration at the crypto. But the fundamental cause of the boom in Bitcoin is an old -fashioned Fiate from the traditional finance sector, Marion Laboure and Camilla Siazon of DB of DB of DB Fortune.
The sums are astounding.
- There were $ 35 billion in new ETF Bitcoin entries offered by Wall Street Funds in 2024.
- So far, there have been an additional $ 50 billion this year.
- “Last Thursday, alone saw an influx of a day of $ 1.17 billion in American FNB Bitcoin FNB,” said DB analysts.
- Ishares Bitcoin Trust of Blackrock alone has $ 80 billion – it has only existed for 18 months.
- It took 15 years at SPDR Gold Shares ETF to reach this level.
The constant influx of traditional money has reduced the volatility of Bitcoin – an asset which has repeatedly lost the majority of its value. “This strong increase via FNB entries contributed to the liquidity of Bitcoin and maintained the trade in cryptography in a relatively tighter range compared to previous years,” say Laboure and Siazon.
There is another factor that feeds Bitcoin: the drop -down dollar. The dollar has lost almost 10% of its value compared to foreign currencies this year on the Dxy index. Investors are looking to store money elsewhere. “The United States signing its tax bill this month, actually locking deficits of 6.5% to 7% of GDP for the coming years, we have started to attend a deselling trend (the dollar index is down by almost -10% ytd) pushing investors to alternative assets such as gold and bitcoin,” said the note.
Here is an instantaneous action before the opening bell in New York:
- A consumer price index update is due at 8:30 a.m. The current rate is 2.4%, analysts expect an increase of 0.3%to 2.7%.
- Future S&P 500 increased by 0.31% pre-commercial and the underlying index increased by 0.65% yesterday.
- Hong Kong Hang increased by 1.6% this morning.
- Japanese Nikkei 225 increased by 0.55%.
- Stoxx Europe 600 Addition of 0.3% at the start of negotiations.
- UK FTSE 100 was flat at the start of trading, but ready to cross the level of 9,000 for the first time.
- Bitcoin Plot of 2.56% at $ 116,000.
