Bitcoin price demonstrates consolidation within a narrow range, against the backdrop of strong demand and increased ETF inflows.
ETF Inflows and Bitcoin Demand
Bitcoin remains in a solid position at $118,200, a slight decrease from its record at $123,000. Current data shows that all spot Bitcoin ETFs added over $2.3 billion in inflows this week, a slight decline from $2.7 billion last week. According to BlackRock, the rising inflows into ETFs indicate strong demand from Wall Street investors who see Bitcoin as a high-performing alternative to traditional financial instruments.
Technical Analysis of Bitcoin Price
The daily chart shows Bitcoin making a strong bullish breakout, reaching a new high. However, the trend has weakened, and Bitcoin is now trading within a tight range, forming a bullish pennant – a popular continuation sign. Bitcoin remains above the 50-day and 100-day moving averages, indicating a positive outlook for further gains. It is anticipated that if the price exceeds $123,000, it may further increase, potentially reaching $125,000.
Significance of GENIUS Act
The significance of the GENIUS Act, signed by Trump, cannot be underestimated. It introduces new rules for all US stablecoins, including regular audits and disclosures. This could lay the groundwork for increasing capital inflows into the crypto industry. Furthermore, the potential allowance of retirement funds to invest in cryptocurrency opens up over $9 trillion in assets to the industry.
Thus, Bitcoin continues to perform steadily, while ETF inflows signal increasing investor interest. Legislative changes and their expected impact positively affect the market.
