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Bitcoin is on a roll: What exactly is driving this momentum?

TL;DR

  • Bitcoin’s price is surging, hitting an all-time high, fueled by the momentum of spot Bitcoin ETFs and market sentiment swinging to extreme greed.
  • Despite macroeconomic challenges, Bitcoin’s volatility and interest continue to rise, with a notable decrease in Bitcoin held on exchanges to the lowest since April 2018.
  • The launch of spot Bitcoin ETFs has attracted significant institutional investment, with record inflows into crypto assets, particularly Bitcoin.
  • Retail investor interest in Bitcoin has also spiked, evident from the growing number of Bitcoin wallets and most addresses being in profit.

Bitcoin’s rollercoaster has been on the rise again, folks, and if you’re scratching your head wondering why, you’re not alone. But don’t worry, we’re here to dissect this beast without any sugarcoating. The digital currency has been smashing through ceilings, leaving many in awe and some just plain confused.

A Surge in ETFs and Investor Interest Lights the Fire

First off, let’s talk about the big elephant in the room: ETFs. Those fancy Exchange-Traded Funds have been all the rage, especially when the U.S. stock markets flung their doors open. BlackRock and Fidelity weren’t playing around; they saw hundreds of millions in trades for their spot Bitcoin ETFs faster than you can say “bull run.” And guess what? Institutional investors have been pouring cash into crypto like there’s no tomorrow. We’re talking $10.3 billion this year alone, almost matching the whole of 2021. Bitcoin, being the darling of the crypto world, snagged the lion’s share with $9.9 billion funneling into its corner.

But it’s not just the suits and ties getting all googly-eyed over Bitcoin. The average Joes and Janes have been upping their game too. The number of Bitcoin wallets not just sitting empty has stayed north of 51 million. That’s right, more people are holding onto Bitcoin, and thanks to the price climbing month over month, almost everyone’s seeing green in their digital wallets.

Now, as much as we love to see Bitcoin setting new records, hitting $71,873 at one point, it’s not just about the numbers going up. It’s the optimism, the bullish vibes that have everyone from Wall Street to your next-door neighbor keeping a close eye on where Bitcoin heads next.

A Little Nudge from Big Names and the Fear of Missing Out

Believe it or not, even the big wigs like Donald Trump are throwing in their two cents, adding to the Bitcoin frenzy. Though not personally invested, Trump’s musings on Bitcoin being “an additional form of currency” have added fuel to the fire. This kind of nod from high-profile figures only stokes the flames of interest, pushing more people to jump on the bandwagon.

But here’s the kicker, while Bitcoin’s journey to the moon seems unstoppable, it’s riding on some seriously volatile waves. Funding rates are sky-high, and the swings in price are enough to make even seasoned traders’ heads spin. Yet, despite this wild ride, the promise of big gains has shorts getting squeezed and liquidations hitting the roof.

So, what’s next on this wild ride? Some are eyeballing $75,000 as the next big milestone, while others caution that the road ahead could be bumpy, with potential corrections looming. Remember, Bitcoin loves to keep us on our toes, and just when you think you’ve got it figured out, it throws another curveball.

Disclaimer: The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

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Jai Hamid

Jai Hamid is a passionate writer with a keen interest in blockchain technology, the global economy, and literature. She dedicates most of her time to exploring the transformative potential of crypto and the dynamics of worldwide economic trends.

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