Bitcoin has performed very well in the past week. However, it failed to break the expected all-time high price barrier. So what caused this progress?
Expectations this week are high due to changes in macroeconomic conditions and the rise in Bitcoin prices. But even the newly announced trade deals failed to surpass the all-time high of $109,588 in January. A deal announced between the United States and the United Kingdom failed to price. Even news about ties with China should be added to this, but despite the short-term surge, it has not broken all-time highs. So, what has led to the last-minute surge so far?
Bitcoin price rises
Not all of this is doom and melancholy. Last week, it rose more than $100,000 for the first time in months. Although short-term gains that people expect not to exist do not exist, this is a major move for traders who hold it as Bitcoin continues to spread upwards gradually. In yesterday’s U.S. trading, the coin had an intraday high of $105,819 before a rapid sell-off. Bitcoin price USD is now stable at around $102,000. It still manages to earn about 10.9% in a week and also grew 25.1% in a month. 
Part of the record-breaking may boil down to increased profits. Traders began to accept that whale activity slowed down since last weekend. The active Bitcoin address has also stopped.
It is worth noting that this is when futures in the U.S. stock market react with a huge reaction. The dollar index converged sharply. This may be another sign that Bitcoin may be uncoupled from socioeconomic factors.
Over the past month, announcements about internal Bitcoin holdings. Despite the loss released in the first quarter of this year, the strategy announced its plans to buy more bitcoins. They acquired 13,390 bitcoins. This is the intention of many other companies in the United States and abroad to announce their intention to hold the currency. For example, KindlyMD announced a merger with Nakamoto Holdings.
There are indicators that this price merger may stay here for a while. Although there are a wealth of new buyers, there are also a lot of profits at this time. This is seen in the spot market and in the permanent futures market. There is also the upcoming Consumer Price Index Report (CPI). This will indicate that inflation levels continue to rise and may be an indicator of the imminent stagnation in the economy.
Bitcoin ETF inflow
Last week’s rally may also boil down to Bitcoin ETF inflows. As strategies buy more Bitcoin, the inflow of Bitcoin ETF products begins to be large. In fact, $867 million was recorded in just one week. This is a continuous inflow in the fourth week and raises its year-to-date value to around $6.7 billion.
There are several theories as to why this happens. The M2 money supply has increased worldwide. His addition is the increased risk of American traps. Many people may view Bitcoin as a hedge, especially those in the Trad-Fi industry, who prefer to invest through ETFs rather than buying Bitcoin directly.
This can be compared with the Ethereum ETF. Although coins have risen 40% over the past week, this has not moved to inflows in the Ethereum ETF. In the space of the week, they recorded only $1.5 million inflows. The outstanding Altcoin is Sui, which managed to create an inflow of $11.7 million and even beat Solana.
There is a good chance that these ETF products will only increase. Currently, the Securities and Exchange Commission provides backlog for those applying for crypto ETFs. Currently, if people want to use SUI ETF products, they must invest abroad.
US countries compete for Bitcoin reserves
In addition, several Bitcoin reserves have been established. New Hampshire is the first to announce that it will allocate public funds to reserves for buying Bitcoin in the next few years. The HB 302 Act was signed to diversify the state’s reserves. It was signed by Governor Ayotte. Although many states have tried it over the past few months, their bills have either been rejected or stalled. 
Arizona has passed the ability to buy bitcoin directly through public funds. The bill SB 1025 was rejected by Gov. Katie Hobbs. Instead, the governor allowed Bitcoin to be distributed and accumulated from unclaimed assets by signing HB 2749 into law.
All of this represents the long-term gains of cryptocurrencies. With further institutional investment, it may even indicate a loss in Bitcoin volatility. If it stays away from macroeconomic factors, especially in the United States, it would be a certain hedge against inflation. So now may be the best time to buy and hold.
