Bitcoin Nears All-Time High on Renewed Institutional Demand

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Bitcoin Nears All-Time High on Renewed Institutional Demand
  • Spot Bitcoin ETF inflows surge to 2-week high of $303 million.
  • Bitcoin price jumps 7% to $66,567, near all-time high.
  • Hedge funds join the rally, with Millennium holding $2 billion in Bitcoin ETFs.

Bitcoin prices rallied into bullish territory fueled by a surge in spot Bitcoin ETF inflows and a 7% price increase over the past day. This positive movement comes on the heels of key US inflation data meeting expectations, easing investor concerns.

On May 15th, spot Bitcoin ETF inflows in the US skyrocketed to a two-week high of $303 million. This significant inflow reflects renewed institutional confidence in the cryptocurrency, mirroring the positive sentiment in the market.

Fidelity’s FBTC fund led the charge, attracting a record-breaking $131 million on the day, its highest since March 26th. Bitwise’s BITB fund wasn’t far behind, experiencing a solid day with an inflow of $86 million, its highest since early March. Even Grayscale’s GBTC, which had seen outflows for the past four months, witnessed a reversal with a $27 million inflow.

This renewed institutional interest extends beyond traditional investment firms. Regulatory filings revealed that hedge fund giant Millennium Management holds a staggering $2 billion Bitcoin ETF portfolio. Millennium Management is now the largest holder of specific Bitcoin ETFs, including BlackRock’s IBIT and Fidelity’s FBTC. Other notable hedge funds like Paul Singer’s Elliott Capital and Apollo Management Holdings also disclosed holdings in Bitcoin ETFs, further solidifying the institutional appetite for the digital asset.

The surge in ETF inflows coincided with a significant jump in Bitcoin’s price. On May 15th, Bitcoin surged 7%, reaching a high of $66,567 during early Asian trading. This brings Bitcoin within 10% of its all-time high, a milestone last achieved in December 2021.

The positive market sentiment can be partly attributed to the release of the US Consumer Price Index (CPI) data on May 15th. The data met expectations, easing concerns about inflation, a key factor influencing Federal Reserve’ decisions on interest rates. Lower interest rates tend to be positive for riskier assets like Bitcoin, as they increase investor appetite for higher-yielding alternatives.

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