Market Times:


New York:


Bitcoin Surges to $70k Bouyed by News of the US Congress Bills

Bitcoin has finally returned to $70k for the first time since April. Fundamentals are playiing a huge a whole in the most recent surge

Bitcoin on fire

A sudden rally has propelled the price of Bitcoin to new heights. Hitting a new record today, the value of Bitcoin surged above $70k, even pressing forward, for the first time in more than five weeks. At the time of writing, the leading cryptocurrency was exchanging hands at $69k, an uptick from the $68,000 level mark.

Bitcoin Flips Bullish

The recent price downturn took an upward turn last week after the US government released April inflation data, which came in below expectations. The disclosure of quarterly institutional filings revealing notable investments in spot bitcoin ETFs by the Wisconsin State Pension Board and several prominent hedge funds helped propel Bitcoin price.

The State of Wisconsin Investment Board (SWIB) revealed its significant investments in two common spot Bitcoin ETFs: BlackRock’s iShares Bitcoin Trust (IBTC) and Grayscale’s GBTC.

The SWIB filed a 13F with the Securities and Exchange Commission (SEC) some days back and revealed that it holds about 2,450,400 shares of IBTC and 1,013,000 shares of GBTC. Through the filings, SWIB became the first state agency to make its holdings in the spot bitcoin ETF public.

The newly launched Bitcoin ETF is another factor responsible for the new all-time high. 

Following a prolonged delay in approving a Bitcoin ETF for US investors, the U.S. SEC finally approved the first Bitcoin ETF in January 2024.

Since then, there has been an influx into the crypto space, with investors increasing their holdings. According to IntoTheBlock, Bitcoin whales with over 1,000 BTC have increased their holdings by 250,000 BTC. 

According to another report on The Block, the U.S. spot bitcoin ETFs recorded about $948.3 million in net inflows this week, in addition to the $116.8 million net inflows made last week.

Among the list of well-performing ETFs is Fidelity’s Bitcoin ETF (FBTC), which recorded $99.4 million in inflows on Tuesday. BlackRock’s iShares Bitcoin Trust (IBIT) also recorded about $38.1 million that same day, with other popular ETFs like Grayscale’s Bitcoin Trust (GBTC) following through.

As the crypto market expands and adoption of the ETF increases, bitcoin is set to attain new all-time highs, way above the $68k mark.

Gideon Geoffery