Bitcoin is nearing $70,000 as risk-on sentiment rises. Institutional and retail demand is driving crypto equities higher. Bernstein cited market optimism for risky assets such as memecoins and mining stocks.
Bitcoin is once again close to $70,000.
A surge in exchange-traded fund inflows, memecoins and crypto-related stocks is a sign that investors are positioning themselves to take on more risk in hopes of higher returns.
“Bitcoin ETF inflows, crypto equity markets and retail trading sentiment remain risk-on,” Bernstein analysts opined.
This growing momentum could further destabilize institutional and retail demand.
ETF flows
Institutional demand played a big role in Bitcoin’s latest leg up.
Since their adoption in January, spot bitcoin ETFs have seen cumulative inflows $21 billion According to Farside data.
Along with the rising price of Bitcoin, the Net asset value According to analysts Min Jung and Rick Maeda of Presto Research, these ETFs are now worth a record $66 billion, representing about 5% of Bitcoin’s total market value.
Bernstein analysts believe the rise in ETF inflows is due to asset managers now focusing on wealth advisors and broader investors rather than just hedge funds.
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This change is driving more direct demand for Bitcoin.
Crypto Equities and Retail
Riding bullish momentum, crypto mining stocks have surged in the past 30 days, Bernstein found.
Riot Platforms rose 37%, while CleanSpark and Marathon Digital gained 43% and 21%, respectively.
Over the same 30-day period, Bitcoin saw a 9% gain.
Bernstein also pointed to “continued risk-on sentiment,” with Robinhood’s active traders up 10% from last quarter and crypto trading revenue up 160% from last year.
Bernstein says this optimism is likely to continue.
Memecoins
Memecoins have made a comeback, attracting new retail investors afraid of missing out on the next big trend.
The combined memecoin value has tripled in the past six months to $66 billion, making them “the fastest growing coin category in crypto,” according to Bernstein.
An excellent example is the GOAT memecoin.
Rumored to have been created by AI, the token’s rise was fueled by endorsements from an AI bot on social media. Its value rose to $500 million before falling to $370 million in just five days.
However, Bernstein predicts that these AI-meets-crypto interactions will create rifts with traditional finance, which “may struggle to adapt to the AI economy.”
Related TopicsBITCOINBITCOIN ETFMEMECOINS
