Bitcoin is once again gaining heightened momentum, thanks to robust interest from institutional investors. In the last 5 days, the price of the cryptocurrency has surged by nearly 10%. While the US administration is implementing steps to ease trade tensions, including striking a deal with China, concerns remain high due to turbulent macros.
Interestingly, Bitcoin has outperformed gold in price movement so far this month. In the last 24 hours, the crypto coin has witnessed a surge of over 3.54%, trading at $103k price level, as per data by CoinMarketCap. Analysts believe that the recent surge in Bitcoin's price is largely owing to robust institutional money flowing through spot ETFs.
"This upward move is largely attributed to renewed institutional interest, with over $5 billion flowing into Bitcoin Spot ETFs. These inflows not only provided fresh liquidity but also boosted investor confidence in Bitcoin’s long-term trajectory," said Edul Patel, co-founder and CEO of Mudrex.
Ethereum also witnessed a similar price movement, surging over 20% and trading at $2,349 price mark. Other major cryptocurrencies, like XRP and Solana, followed suit and increased over 8.57% and 11.48% in the last 24-hour period, respectively. Analysts also pointed out that the recent rise in major cryptocurrencies is due to strong whale activity, wherein large entities are involved in buying and selling actions.
"Whale activity has also intensified, accumulating over 81,000 BTC in the past six weeks, signalling strong conviction. Adding to the momentum, improving global trade relations forecast a strong economic outlook, attracting additional capital," Patel said.
Will the Bitcoin Rally continue?
As per data, on-chain activity is currently supporting bullish trend, with the Bitcoin network processing $12.5 billion in daily transactions. This signals a 25% increased compared to last week's average.
"Such high on-chain throughput suggests more money is moving through Bitcoin, consistent with new investors and capital flow. If this momentum sustains, Bitcoin is likely to establish a solid support zone at current levels, potentially setting the stage for a breakout towards its all-time high of $109,200," Patel added.
However, it is worth mentioning that the price of Bitcoin has remained largely volatile so far this year. And easing trade war tensions might prompt investors to put their money in safe-haven assets.
