Preface

Bitcoin once again becomes the focus of global attention, with the price breaking through the $100,000 mark in the near term. According to data, the daily increase is about 7.6%, and the weekly increase is about 12%. Behind this astonishing rise reflects the common drive of global economic turbulence, institutional investment inflows, and optimistic market sentiment.

Global economic outlook and market optimism

Recently, news of the US-China trade negotiations has been released, easing market concerns about the tense economic situation. The US Treasury Secretary is expected to engage in trade negotiations with China in Switzerland, which is widely believed to ease the trade friction since the Trump era. This news not only stimulates global market risk appetite but also highlights the value of Bitcoin as a safe-haven asset once again. More importantly, the Federal Reserve decided to maintain interest rates between 4.25% and 4.5% at its meeting on May 7th, emphasizing that the US economy remains robust. Despite market expectations of Trump’s pressure to cut rates, the Fed chose a stable policy, further boosting market confidence in Bitcoin.

Institutional investment influx and ETF fund flow

The influx of institutional investment is undoubtedly an important driver of the current rise in Bitcoin. According to market reports, Bitcoin exchange-traded funds (ETFs) saw inflows of over $142 million on May 7, reflecting a growing demand from institutions for Bitcoin as an asset allocation. Since their launch in 2024, these ETFs have accumulated inflows of over $35 billion, becoming an important option for global asset allocation. Large investment institutions such as the Abu Dhabi Sovereign Wealth Fund and the Swiss National Bank have also increased their holdings of Bitcoin, indicating that global capital is flowing into the cryptocurrency market at an accelerating pace.

(Bitcoin ETF inflow, source:Farside.co.uk)

The rise of Bitcoin as a safe-haven asset

In addition to the drive of institutional capital, the rise of Bitcoin is also reinforced by its safe-haven asset attributes. With the easing of the US-China trade negotiations and increasing uncertainty in domestic assets in the United States, many investors are starting to seek asset allocations beyond the US dollar, with Bitcoin becoming one of their top choices. In the past, Bitcoin was often seen as a mirror image of tech stocks, but now it is gradually decoupling, showing trends independent of traditional markets.

Future Outlook

With the uncertainty of the global economy, the continuous influx of institutional capital, and the further development of the US-China trade relationship, Bitcoin is expected to remain strong. If the Fed adjusts its policies in the future and loosens monetary policy, the price of Bitcoin may further soar. In the context of global funds seeking safe havens and digital asset allocation, Bitcoin may no longer be just a leader in the crypto market, but also become an important part of global asset allocation.

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Summary

The recent price surge of Bitcoin reflects the combined driving forces of global economic instability, influx of institutional investments, and market optimism. With the ongoing uncertainty in the global economy, further influx of institutional capital, and the development of US-China trade relations, Bitcoin is expected to remain strong. If the Federal Reserve adjusts its monetary policy in the future, the price of Bitcoin may rise further. Against the backdrop of global funds seeking safe havens and digital asset allocation, Bitcoin will not only continue to lead the crypto market, but also has the potential to become an important part of global asset allocation.