Bitcoin Nears $70K as ETFs, Memecoins and Crypto Stocks Surge

A rise in tandem of exchange-traded fund inflows, memecoins, and crypto-related stocks is a sign investors are positioning themselves to take on more risk

Bitcoin is once again approaching the $70,000 mark, driven by a confluence of factors including exchange-traded fund (ETF) inflows, memecoins, and crypto-related stocks, which are indicating a broader shift towards riskier investments in anticipation of higher gains.

“Bitcoin ETF inflows, crypto equity markets, and retail trading sentiment are screaming risk-on,” Bernstein analysts wrote in a recent note to clients.

These converging dynamics are amplifying both institutional and retail demand, which could drive further volatility in the market.

институциональный спрос

Institutional demand has been a key driver of Bitcoin's recent rally.

Since their approval in January, spot Bitcoin ETFs have seen cumulative inflows of over $21 billion, according to Farside data.

Coupled with Bitcoin's rising price, the net asset value of these ETFs has now reached a record $66 billion, which is nearly 5% of Bitcoin's total market capitalization, according to analysts Min Jung and Rick Maeda of Presto Research.

Bernstein analysts attributed the surge in ETF flows to asset managers now targeting wealth advisors and a wider range of investors, as opposed to focusing primarily on hedge funds.

This shift is leading to more direct demand for Bitcoin.

Crypto equities and retail

In line with the bullish trend, crypto mining stocks have surged over the last 30 days, according to Bernstein.

Riot Platforms shares rose by 37%, while CleanSpark and Marathon Digital gained 43% and 21%, respectively.

During the same 30-day period, Bitcoin漲了 9%。

Bernstein also highlighted “sustained risk-on sentiment,” with Robinhood’s active traders increasing by 10% from the last quarter and crypto trading revenue surging by 160% since last year.

This optimism is expected to continue, according to Bernstein.

Memecoins

Memecoins have experienced a remarkable resurgence, attracting new waves of retail investors amid a collective fear of missing out (FOMO) on the next major trend.

Over the last six months, the total value of memecoins has tripled to $66 billion, making them “the fastest growing coin category within crypto,” according to Bernstein.

One striking example is the GOAT memecoin.

Rumored to have been created by AI, the token's rapid ascent was fueled by endorsements from an AI bot on social media. Its value surged to over $500 million in just five days before experiencing a slight pullback, now sitting at $370 million.

However, Bernstein anticipates that these interactions between traditional finance and AI-meets-crypto will create rifts, as “traditional finance may struggle to adapt to the AI economy.”

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