Bitcoin (BTC) Price Surges Above $98,000 as US Bitcoin ETFs Rebound Strongly

Despite recent market fluctuations, investor interest in Bitcoin remains strong, as evidenced by the remarkable $908 million in net inflows to US Bitcoin ETFs on Friday.

Bitcoin remained a hot topic among investors despite recent market fluctuations, with a remarkable $908 million in net inflows into US Bitcoin ETFs on Friday. This follows a more subdued outflow of $242 million the previous day.

Fresh data from Farside Investors showed that US spot Bitcoin ETFs received a total of $908 million, with major financial players contributing to the capital influx.

BlackRock's iShares Bitcoin Trust (NYSE:IBIT) took the lead with $253 million in net inflows. This marks a strong recovery for the fund after experiencing three days of outflows totaling $392 million. By the end of Friday, IBIT's net inflows had reached $37 million, bringing its total Bitcoin holdings to 548,506, valued at $53.4 billion.

Fidelity's Bitcoin Fund (NYSE:FBTC) also saw a large net inflow of $357 million, marking one of its best daily performances since its launch. With the latest inflows, FBTC had attracted over $12 billion in net inflows year-to-date.

Meanwhile, the ARKB fund, jointly operated by ARK Invest and 21Shares, reported $222 million in net inflows, reflecting the growing appeal of Bitcoin ETFs.

Bitcoin Price Surges Past $98,000

In addition to the surge in ETF inflows, Bitcoin's price also saw a notable increase on Friday. The world's leading cryptocurrency briefly surpassed the $98,000 mark, reaching $98,900 for the first time since December 26.

This increase brought Bitcoin's price up 4% over the past week, further bolstering optimism in the crypto market.

Throughout the week, Bitcoin's price experienced significant volatility, rising above $97,000 on Wednesday before dipping below $96,000 on Thursday. However, the overall trend remained positive, with Friday's surge pushing the price to new heights.

Bitcoin's price performance continues to captivate both retail and institutional investors, with some predicting a bullish 2025 for the cryptocurrency.

Analysts are optimistic about Bitcoin's prospects, highlighting its potential as a store of value and a hedge against inflation, which is expected to remain elevated in the coming years.

Institutional, National Adoption to Drive Bitcoin's Value

Galaxy Research has forecasted that in 2025, five Nasdaq 100 companies and five nations will add Bitcoin to their balance sheets, a move driven by the desire to diversify their portfolios and facilitate trade settlements using the cryptocurrency.

According to the research, this growing institutional interest, coupled with national adoption, is likely to propel Bitcoin's value in the coming years.

Jan van Eck, CEO of VanEck, has also recommended that investors increase their holdings in Bitcoin and gold as part of their investment strategy for 2025.

“Investors should consider increasing their exposure to Bitcoin and gold as part of their 2025 game plan to protect against the erosion of purchasing power, especially from the inflation we're experiencing, the fiscal uncertainty, and the global trend of de-dollarization,” van Eck said.

"If you look at the supply and demand fundamentals for Bitcoin, and you combine that with the institutional interest,はどこをとっても受けるしか道はない (wherever you look, you can't help but be receptive to it).”

Several financial analysts and institutions are converging on the projection that Bitcoin could reach anywhere between $150,000 and $170,000, a price range that aligns with van Eck's suggestion.

Bitcoin as a Hedge Against Financial Risks

As global economic uncertainty continues to grow, Bitcoin's potential as a hedge against financial risks has become increasingly apparent.

With concerns over inflation, geopolitical tensions, and the potential decline of the US dollar, more investors are turning to Bitcoin as a store of value.

The cryptocurrency's decentralized nature and limited supply make it an attractive alternative to traditional fiat currencies, which are susceptible to devaluation and inflation.

In times of economic turbulence, investors often flock to safe-haven assets such as gold, precious metals, and недвижимость, with the belief that these stores of value will protect their purchasing power against rising inflation.

Bitcoin, with its scarcity andを持ち運べる (portability), has emerged as a digital store of value, offering unique advantages in the digital age.

The cryptocurrency's price has soared in recent years, fueled by growing institutional adoption and demand from investors seeking a hedge against inflation and economic downturn.

However, it's crucial to note that Bitcoin's price is notoriously volatile and can fluctuate rapidly, influenced by a wide range of factors including news, regulations, and the overall market sentiment.

Investors considering Bitcoin as a hedge against financial risks should proceed with caution and conduct thorough research before making any investment decisions