Bitcoin Price Approaches Record High Amid Surge in ETF Inflows
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Bitcoin Price Update
Bitcoin's price reached approximately $73,500 after 3 PM ET on Tuesday, then dipped to around $72,600 by 4 PM ET, representing a 4% increase over the previous 24 hours.
Capital Inflows into Bitcoin ETFs
This surge approaches Bitcoin’s record high of over $73,700, set in March, amid significant capital inflows into US spot bitcoin ETFs. Data from Farside Investors indicates that an additional $479 million entered this category on Monday.
Since their launch in January, these funds have accumulated $22.5 billion in net inflows, with nearly $3.9 billion, or 17%, occurring since October 11.
Institutional Interest
Bitwise CIO Matt Hougan noted increased institutional interest during an X space discussion. His firm regularly meets with institutions about crypto allocations, and the number of meetings resulting in such allocations has significantly increased recently.
Some institutions are adopting “crypto sleeves,” which involve not just exposure to a bitcoin fund but also investments in ETH and companies like MicroStrategy or bitcoin miners. Hougan emphasized treating crypto similarly to stocks by investing in a diversified basket rather than individual assets.
Market Sentiment
Investors are betting on ongoing fiat currency debasement by governments. Hougan stated that BTC could reach $200,000 without the dollar collapsing, by capturing a portion of gold’s market value.
Opinions vary on crypto price trajectories depending on potential election outcomes, but there may be opportunities for BTC to achieve a new all-time high before the election concludes.