Bitcoin prices reached an all-time high of £87,626 ($118,705) during early Friday trading as investors pile cash across risk assets. The bullish momentum also drove prices of popular crypto tokens like Dogecoin, XRP, and Ether, as well as stocks of crypto trading platforms like Robinhood (NASDAQ:HOOD) and Coinbase (NASDAQ:COIN).
The surging crypto rally comes days before Congress kicks off 'Crypto Week' on 14th July, where policymakers will discuss multiple bills to shape the crypto industry's regulatory framework.
'A favourable outcome could accelerate institutional inflows, reinforcing Bitcoin's role as a macro asset and strengthening confidence in compliant crypto platforms,' said Jesse Jarvis, CEO of Kaiko, a crypto market data provider. Among the bills up for debate is the Genius Act, which recently passed the Senate and focuses on a federal framework for stablecoins.
Shares of USDC stablecoin issuer Circle (NYSE:CRCL) also gained 2.2% on Thursday, and the stock is up over 500% since going public on 5th June.
The crypto rally also coincides with artificial intelligence leader Nvidia's market capitalisation reaching a record £2.95 trillion ($4 trillion) valuation, and the tech-focused Nasdaq Composite also hitting a new record mid-week. 'Historically, Bitcoin has remained highly correlated with tech stocks, and this correlation is still playing out,' Nic Puckrin, founder of the Coin Bureau, wrote yesterday.
According to data compiled by Axios, investors are in 'no mood' to sell bitcoin as major companies worldwide aggressively raised funds to buy the crypto token in recent months. More than 800,000 bitcoins are held in the treasuries of public companies. Furthermore, US spot BTC exchange-traded funds now hold over 1 million bitcoins.
Crypto analyst Shaun Edmondson posted on X, formerly Twitter, earlier this week that BlackRock's spot Bitcoin ETF became the second-biggest crypto holder with reserves of 700,439 coins. The iShares Bitcoin Trust ranks behind the 1.2 million coins held by Satoshi Nakamoto and ahead of Strategy's (NASDAQ:MSTR) 597,325 coins.
Companies like Tesla (NASDAQ:TSLA), Acurx Pharma, and Riot Platforms (NASDAQ:RIOT) have also joined the trend of piling into bitcoins. Even a Japanese company, Metaplanet, which initially prioritised hotel management, recently became a bitcoin holding company as its stock price surged over 275% this year.
The fresh wave of crypto rally led by bitcoin could also be attributed to the relatively improved macroeconomic landscape. For instance, interest rate cuts by the US Federal Reserve look more possible than earlier.
In the past 24 hours, crypto short sellers liquidated their positions worth £745.56 million ($1.01 billion), marking the biggest short-side wipeout of this year. Short liquidations happen when traders borrow capital to bet against market rallies, only to be compelled to close positions when the market moves against them.
Open interest on BTC-tracked futures increased £1.47 billion ($2 billion) in recent hours, with the long-short ratio implying rising bets on further price increases.
A Ben Harvey and Will Clemente III research report recently forecast that there's a 30% chance bitcoin prices could reach £118,109 ($160,000) by year-end if global liquidity remains strong and institutional demand for tokens continues to increase.
Disclaimer: Our digital media content is for informational purposes only and not investment advice. Please conduct your own analysis or seek professional advice before investing. Remember, investments are subject to market risks and past performance doesn't indicate future returns.
