Bitcoin's record high is supported by institutional demand and interest rate cut expectations
Bitcoin hit an all-time high on Friday morning, surpassing the USD 118,000 barrier, amid a strong investment flow of USD 1.2 billion from ETFs per day, reflecting the growing confidence of financial institutions in the digital currency as a long-term investment asset.
According to the Data, Bitcoin has jumped by 6.5% over the past 24 hours to the levels of 118,400 dollars and has now retreated slightly from them, while Ethereum has climbed 7.5% approaching the level of 3,000 dollars.
This performance signals the beginning of a strong upward wave in the cryptocurrency market, especially with bitcoin turning into a regulated store of value similar to gold.
ETFs are experiencing the second highest inflow in history
Market data showed that bitcoin ETF funds experienced daily inflows of 1.18 billion dollars on Thursday, the second highest figure since its launch, confirming the great momentum that the market is experiencing.
This performance is due to two main factors:
- Expectations of a reduction in US interest rates, which increases the attractiveness of digital assets as an investment alternative.
- Increased adoption of bitcoin by enterprises as part of financial diversification strategies.
However, cryptocurrencies may face some short-term pressures, especially with the release of Consumer Price Index (CPI) data on July 15, which may raise inflation concerns and lead to temporary profit-taking operations.
Positive medium-term outlook
Despite the potential challenges, the upward wave of cryptocurrencies is expected to continue, supported by several factors, including:
- The beginning of the cycle of interest rate cuts by central banks.
- Increased adoption of bitcoin by institutions in their investment portfolios.
- The development of the role of bitcoin as a legitimate financial asset in global markets.
In this regard, some analysts said that although there are short-term risks such as tariffs, the adoption of institutions and monetary policy forecasts create a supportive environment for the continued demand for bitcoin ETF funds, which promotes the continued growth of the sector.
Bitcoin seems to be on its way to continue its upward march, with investors focusing on supporting fundamentals rather than temporary volatility.
