After US Vice President JD Vance announced that peace talks in Iran and Pakistan had failed, geopolitical risks brought crypto markets to the fore again. Despite this, direct market flows and new purchases continued to be prominent in Bitcoin’s price movements.
Positive atmosphere continues in the market
It seems that the general trend in the Bitcoin market is positive. Strategy company, managed by Michael Saylor, purchased $330 million worth of Bitcoin last week, and the total amount of BTC it acquired reached 766,970. It is estimated that the company added approximately 8,000 BTC to its portfolio this week with the latest transactions.
Activity has also increased in spot Bitcoin ETFs in the US, indicating demand from institutional investors. According to data widely used in the industry, there was a net inflow of $787 million into ETFs this week. This figure was recorded as the highest weekly entry since the beginning of March. The total inflow amount since the beginning of the year has reached approximately 2 billion dollars.
In this process, Markus Thielen, founder of 10x Research, stated in his note to the market that MicroStrategy’s purchases and ETFs’ supply reduction limited the downside risk. Thielen emphasized that his main scenario is a move to $88,000, with oversold signals in technical indicators and the rise in mining companies.
Purchasing pressure and regulation expectations are getting stronger
Shares of publicly traded mining companies in the United States have risen between 10 and 30 percent this month. While the S&P 500 index increased by 4 percent, artificial intelligence-focused company Nvidia gained 6 percent in the same period.
Thielen stated that the fact that some mining companies, in particular, are turning to the field of artificial intelligence hosting means that the market is showing interest in this field again. Additionally, strengthening technical data and increasing market appetite support bullish expectations.
Other indicators that the appetite for the crypto market is strengthening also stand out. Coinbase Premium Index, which shows the price difference between Coinbase traded on Nasdaq and the foreign Binance exchange, rose to 0.0586 percent, reaching the highest level since October. This shows that US investors are creating buying pressure.
Matt Mena, senior strategist at 21Shares, pointed out that the possibility of the Clarity Act being passed later in the quarter could create an important structure for the crypto markets. Mena stated that the law could clarify the conflict of authority between the Securities and Exchange Commission and the Commodity Futures Trading Commission.
The probability of the Clarity Act becoming law this year is priced at 65 percent. The bill, passed by the House of Representatives, is still pending in the Senate.
Mena said, “Retaking $ 73,000 opens the way for a new trial to $ 75,000, then if $ 80,000 is exceeded, the price movement may accelerate, and the possibility of $ 100,000 as the top target for the end of the quarter remains on the table.”
On the macro side, inflation data was mixed, but the underlying trend was seen to be easing. While the Consumer Price Index increased by 0.9 percent on a monthly basis, annual inflation increased to 3.3 percent. The 10 percent jump in energy prices was decisive in this increase.
Core inflation (excluding food and energy) increased by 0.2 percent monthly and 2.6 percent annually, and both data narrowly surpassed expectations. Fundamental price pressures appear to remain under control.
If the Fed ignores temporary energy-related jumps and maintains a flexible policy stance, the liquidity conditions of the markets may strengthen. This may have a positive impact on stocks and cryptocurrencies.
Vikram Subburaj, CEO of the India-based Giottus exchange, stated that the Bitcoin supply is extremely low in the range of 70,000 to 80,000 dollars. Subburaj noted that only 1 percent of Bitcoin in circulation is in this price range, so resistances can be easily overcome.
