Bitcoin exceeded $112,000 and surpassed $116,000 on the 11th. Various interpretations have emerged regarding this surge, but the analysis suggests that the strength of U.S. tech stocks and global institutional demand led to this 'quiet upward trend.'
According to cryptocurrency market tracking site CoinMarketCap, as of 11 a.m. that day, Bitcoin was trading at $115,969, up 4.17% from the previous day. It broke the $116,000 mark around 7 a.m., setting a new all-time high. Bitcoin's weekly increase rate stood at 5.57%. Ethereum was up 6.66% to $2,963, while Ripple was trading at $2.54, up 5.28%.
The strength of Bitcoin is spreading to other cryptocurrency stocks in the stock market. Strategy, the public company holding 580,000 Bitcoins and the largest holder globally, concluded trading on the New York Stock Exchange on the 10th (local time) at $421.74, up 1.52%. The previous day, it had risen by nearly 5%. Cryptocurrency exchanges Coinbase (4.04%) and Robinhood (4.40%) also closed higher for two consecutive days, while Bitcoin mining stocks like Marathon Holdings (2.89%) and Riot Blockchain (2.86%) saw gains.
The biggest influence on this surge was the tech stock rally that began on the 9th on the New York Stock Exchange. Nvidia, a representative of AI semiconductors, exceeded a market capitalization of $4 trillion (approximately 5,505.6 trillion won) during trading, stimulating investor sentiment. The Nasdaq closed at an all-time high, and the S&P 500 index also approached its peak, which led to a surge of assets into both the stock and cryptocurrency markets. CNBC noted, "Institutional investors are accepting Bitcoin as a digital gold, a store of value," adding, "At the same time, Bitcoin continues to show a tendency to rise alongside growth assets like tech stocks."
Additionally, this record high is interpreted as being driven not by short-term speculative funds as in the past, but by global institutional demand for Bitcoin. There are evaluations that significant institutional funds have continued to flow in through Bitcoin spot exchange-traded funds (ETFs), creating this upward market.
According to foreign press reports, as of the 8th, the U.S. Bitcoin spot ETF recorded a net inflow of $8,008,000 (approximately 1.1 billion won), continuing a streak of net inflows for four consecutive trading days. According to investment research firm Far Sight Investors, the cumulative net inflow of the 11 Bitcoin spot ETFs listed on the U.S. stock market reached $50.03 billion. This record was achieved 545 days after trading began on January 11 last year.
Expectations for an interest rate cut also contributed to the increase in Bitcoin. The market predicts that the U.S. Federal Reserve (Fed) will lower interest rates in the second half of the year, and recently, U.S. President Trump publicly criticized Jerome Powell, the Fed Chairman, stating he should lower rates faster, labeling him as 'too slow.' Powell's term lasts until May next year, but it appears that the White House's plans to intentionally shake the Fed are evident, with Kevin Hassett, Chairman of the White House Council of Economic Advisors, rising as a candidate for the next Fed chair.
There are also opinions that the reflective effect of the suspended tariff war has played a part. President Trump stated that he would impose high tariffs of up to 40% on five countries, including Malaysia, Kazakhstan, South Africa, Myanmar, and Laos, while planning to increase the tariff to 25% on Korea and Japan. However, he suspended the implementation date for 21 countries until the next month after sending reciprocal tariff letters.
Experts predict that the rise initiated by institutional buying power is likely to continue for the time being. Gary Ocear, head of global market insights at cryptocurrency asset management firm Hashdex, stated, "While the macroeconomic environment remains uncertain, this bullish trend is not over," adding that new catalysts such as expanding Bitcoin access platforms for institutional investors could push Bitcoin prices above $140,000 within this year.
Chris Kuiper, Vice President of global asset management firm Fidelity, said in a recent statement, "The cryptocurrency infrastructure is becoming more robust, experiments are expanding, and new use cases are gaining attention," acknowledging that the previously predicted stagnation growth scenario has diverged, while analyzing that the trend of providing liquidity globally continues.