Bitcoin (BTC/USD) is poised to break through the $70,000 mark, and analysts from Bernstein are attributing this bullish momentum to a confluence of positive factors. Key among them is the robust support from both institutional and retail investors.
Last week alone, Bitcoin ETFs witnessed a massive influx of $2 billion in new purchases. This brings the total yearly inflows to a staggering $20.5 billion, propelling assets under management past the $63 billion mark. This surge in ETF investments underscores the growing institutional demand for Bitcoin, driving its price higher.
The spike in ETF inflows is not solely driven by market forces. It’s also fueled by a growing sense of optimism surrounding the potential Republican victory in the upcoming U.S. presidential election. Republicans are generally seen as more favorable towards the digital asset space, which has spurred confidence among investors.
Further evidence of this bullish sentiment can be seen in the performance of Bitcoin-centric miners. In October, these companies have significantly outpaced AI-focused stocks. Riot Blockchain Inc. (RIOT) has surged 37%, CleanSpark Inc. (CLSK) has climbed 43%, and Marathon Digital Holdings Inc. (MARA) gained 21% over the past month. This strong performance indicates a belief in Bitcoin’s future and its potential for continued growth.
Bernstein analysts also point to the performance of Robinhood Markets (HOOD) as a positive indicator. The company saw a 10% quarter-over-quarter growth in its active trader base, signaling a “risk-on” sentiment among retail investors. Robinhood’s equity revenues increased by about 50% year-over-year, with crypto trading revenues soaring by a remarkable 160%. This highlights the growing popularity of cryptocurrency trading among retail investors, further bolstering the bullish outlook.
Additionally, meme coins are attracting new retail investors. Their combined market cap has tripled to approximately $66 billion in the last six months. While this trend might seem speculative, it highlights the increasing interest in the broader cryptocurrency market.
The report also emphasizes the burgeoning intersection of AI and crypto. An AI bot endorsing a token recently led to significant market cap growth, showcasing the emerging synergy between these two technologies. This convergence holds immense potential and could further drive Bitcoin’s price in the future.
The influence of Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19. With all these indicators pointing towards a continued bullish trajectory, Bitcoin’s journey towards $70,000 seems increasingly likely.