Demand for risk assets increased significantly following the release of US Consumer Price Index (CPI) data. QCP Capital said: “We expect bullish momentum to return to the highs of $74,000.” This view reflects the market’s reaction to the current economic environment. The CPI data was in line with expectations and eased market concerns about inflation, which makes it possible that the Federal Reserve will slow down the pace of interest rate hikes, making risky assets such as Bitcoin more attractive.
Large asset management companies Millennium and Schonfeld have allocated 3% and 2% of their assets to Bitcoin exchange-traded funds (ETFs), respectively. This shows that institutional investors' interest in Bitcoin is increasing. The participation of these institutional investors not only improves the liquidity of the market, but also enhances the market's confidence in Bitcoin as an asset class.
As of May 15, the inflow of Bitcoin spot ETFs reached $303 million, a two-week high. Fidelity's FBTC fund attracted market attention, recording an inflow of $131 million, Bitwise's BITB fund recorded an inflow of $86 million, and Grayscale's GBTC also recorded a net inflow of $27 million. These data show that the market demand for Bitcoin ETFs continues to grow, further supporting the rise in Bitcoin prices.
Millennium holds a Bitcoin ETF portfolio worth about $2 billion, making it the largest holder of certain Bitcoin ETFs such as BlackRock's IBIT and Fidelity's FBTC. The investment behavior of these large institutions not only boosts market confidence, but also provides strong support for Bitcoin prices.
Bitcoin prices have risen nearly 10% in the past week and 2.7% in the past 24 hours. QCP Capital explained that factors such as national and institutional adoption, easing inflation concerns, and the upcoming US election are shaping a positive market outlook. These factors combined have made the market optimistic about the future trend of Bitcoin.
The CPI data released on May 15 was in line with expectations, easing inflation concerns. This result may affect the Federal Reserve's interest rate decision, making risk assets such as Bitcoin look more attractive. A low inflation environment is generally beneficial to risky assets because investors are more inclined to pursue high-return investment opportunities in a low interest rate environment.
James Coote of RealVision sees the global money supply (M2) index as an important indicator of Bitcoin price trends. He stressed: "Big declines like the one in 2022 are rare and usually temporary." This view shows that changes in money supply have an important impact on Bitcoin prices, and the current trend shows positive signals.
Continued institutional interest and macro factors further reinforce the positive outlook for Bitcoin's future price trend. The participation of institutional investors not only improves market liquidity, but also strengthens the market's confidence in Bitcoin as an asset class. Changes in the macroeconomic environment, such as easing inflation expectations and a low interest rate environment, also provide favorable conditions for the rise in Bitcoin prices.
