Bitcoin (BTC) price broke through $122,150 in early trading on the 1st (local time), approaching its all-time high of $123,000. This sharp increase is primarily attributed to the recent favorable administrative order in Washington and three consecutive days of capital inflows into Bitcoin spot ETFs.
Henrik Andersen, Chief Investment Officer (CIO) of Australian crypto investment firm Apollo Crypto, stated, "After a price adjustment lasting over a month, Bitcoin has started moving again. Positive news is pouring in from various directions, including expanded spot ETF inflows, additional purchases by US financial firms, and favorable policy signals from the White House."
Particularly, the market predominantly analyzes that the recently signed administrative order by Trump allowing cryptocurrencies in 401(k) retirement funds has acted as a strong catalyst for Bitcoin's surge. If this order becomes a reality, it could potentially inject up to $9 trillion from US retirement fund assets into the cryptocurrency market, significantly expanding the institutional investor base.
Bitcoin ETF-related fund flows are also showing strong performance. According to UK asset management firm Parsid Investors, Bitcoin funds flowing through spot ETFs during the last three trading days of last week totaled $773 million. Additionally, with Michael Saylor of MicroStrategy hinting at further increasing his Bitcoin asset holdings of $76.8 billion, expectations are growing for potential additional purchases by large corporations.
Despite this, market-wide overheating concerns remain limited. The Crypto Fear & Greed Index, which indicates cryptocurrency investment sentiment, was at 70 points out of 100 on this day, in the 'Greed' stage, but only increased by 1 point from the previous day, suggesting that investment sentiment is still maintaining balance.
Meanwhile, Bitcoin price had been moving within a narrow box between $115,000 and $120,000 until recently, showing low volatility. However, with this recent surge, perspectives are gradually expanding that this signals an imminent long-term trend reversal.
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