Bitcoin (BTC-USD) recaptured investor consideration on Monday afternoon because the world’s largest cryptocurrency jumped past $107,000 to a new file.
The token has gained more than 50% since Donald Trump’s presidential victory in November on optimism over bitcoin-friendly insurance policies underneath his incoming administration.
A lot of the upward value motion stems from institutional patrons and flows into bitcoin spot exchange-traded funds (ETFs).
“Bitcoin ETF demand has been relentless with over $2Bn inflows clocked final week. Seven out of the final 9 weeks, Bitcoin ETF inflows have exceeded $2Bn,” Bernstein analyst Gautam Chhugani wrote in a observe on Monday.
At the same time as bitcoin’s value has greater than doubled this yr, Chhugani forecasts the token will reach $200,000 by the tip of 2025.
UK-based Normal Chartered analysts just lately famous establishments have purchased 683,000 tokens yr to date through spot ETFs and purchases by software program agency MicroStrategy (MSTR).
A few third of these inflows, or the acquisition of 245,000 bitcoins, have occurred because the presidential election.
“In 2025, we anticipate institutional flows to proceed at or above the 2024 tempo,” wrote Geoff Kendrick, world head of digital belongings analysis at Normal Chartered, earlier this month.
Crypto-related shares additionally rallied on Monday with bitcoin proxy MicroStrategy (MSTR) popping 6% as traders reacted to the company’s latest token purchase and its upcoming addition to the Nasdaq 100.
Learn extra: Bitcoin clears another record: Is now the time to invest?
Bitcoin’s meteoric rise over the previous month has made the asset exhausting to ignore even amongst extra conventional portfolio managers.
“It’s labored like loopy, and it’ll most likely proceed to work like loopy, however I can’t put my pencil to the paper and make sense of it from a monetary standpoint,” George Seay, Annandale Capital founder and chairman, advised Yahoo Finance on Monday morning.
“It’s rather more of a psychological anti-fiat forex, anti-government, anti-inflation commerce, however it’s labored so I don’t have something towards it,” he stated.
Ines Ferre is a senior enterprise reporter for Yahoo Finance. Observe her on X at @ines_ferre.
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