Bitcoin, after hitting a record high two weeks ago, has stabilized despite increased short-term volatility. The cryptocurrency has risen approximately 16% this year, fueled by the Trump administration's favorable stance towards crypto assets. Additionally, easing U.S.-China trade tensions have bolstered risk appetite, driving funds into high-volatility assets like Bitcoin.
Eric Jackson, founder of Emj Capital, notes that sovereign funds and asset management firms are increasingly viewing Bitcoin as a reserve asset potentially surpassing gold. Central banks and institutional investors have also shown heightened interest in the crypto sector, amplifying market focus.
On Tuesday, Bitcoin briefly rose 1.7% to $110,572, nearing its all-time high of $111,980. Ethereum surged 8.3%, leading major cryptocurrencies. The crypto market recently benefited from dual positive developments: traditional banks like Morgan Stanley are advancing crypto operations, and SEC Chairman Paul Atkins indicated regulatory easing at a crypto roundtable. He suggested that DeFi developers won't face federal securities law liability for code misuse, marking a regulatory shift towards supporting blockchain technology.
Circle (CRCL) debuted on the U.S. stock market at $31 per share, with its stock soaring 245% in the first week, reflecting strong demand for crypto infrastructure. Meanwhile, BlackRock's Bitcoin Spot ETF (IBIT, Financial) reached a $70 billion AUM milestone, setting an industry record. Institutional inflows and favorable policies are driving spot market momentum, with traders closely monitoring potential new highs.
