Bitcoin Trades Near Multimonth High As Growing Demand Fuels Gains
Bitcoin prices experienced some strong gains recently.
Bitcoin prices reached a nearly four-month high this weekend and then managed to retain most of those gains today as the digital currency benefited from strong tailwinds in the form of growing demand and improving sentiment.
The world’s most prominent digital currency surpassed $107,000 last night, according to Coinbase data from TradingView.
At this point, it was trading at its most since reaching an all-time high on roughly January 20, additional Coinbase figures from TradingView reveal.
Since rising above $107,000 this weekend, the cryptocurrency has retreated somewhat, but it was still trading north of $106,200 at the time of this writing.
When asked what caused these latest gains, several analysts pointed to evidence of the growing interest of investors.
Julio Moreno, head of research for CryptoQuant, spoke to this, stating via Telegram that “It seems the demand for Bitcoin remains strong.”
“In the futures market traders are opening long positions, which imply higher demand for Bitcoin. This is evident in the open interest of Bitcoin increasing as prices gained,” he emphasized, pointing to the chart contained below:
Bitcoin open interest
“On the spot market, Bitcoin demand in the US is still growing, evident in the positive Coinbase Bitcoin price premium,” Moreno added.
Joe DiPasquale, CEO of cryptocurrency hedge fund manager BitBull Capital, also weighed in on what drove bitcoin’s recent upward price movement, stating that “risk assets are seeing renewed buying interest. Spot BTC ETF flows have stayed strong, and there’s been a noticeable uptick in institutional engagement,” he stated, emphasizing that these factors are all signs of increasing demand.
Brett Sifling, wealth manager for Gerber Kawasaki Wealth & Investment Management, provided his input, emphasizing that the mindset of investors has been changing as of late, causing them to become more interested in so-called risk assets.
“It seems that investor sentiment has changed quite rapidly since the recent sharp correction that we experienced due to the volatility from tariffs and U.S. politics,” he stated via email.
“We believe that Bitcoin has rallied on the back of renewed optimism for risk-on assets, which can be confirmed with the stock market turning green on the year," said Sifling.
He elaborated on some positive developments that might be making market participants feel more optimistic.
“I believe Bitcoin investors are excited about the prospect of new regulation being set in the United States, with a catalyst this week as lawmakers discuss the GENIUS act. While this would create a regulatory framework for stablecoins, it’s a step in the right direction of Trump’s promises to make the U.S. a leader in the crypto world."
“It was also nice to see Coinbase added to the S&P 500 last week, even if it was on the heels of a massive data breach that is affecting their customers,” he added.
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