Bitcoin Stays Strong Near $91K as ETF Inflows Power Rally

Bitcoin (BTC) remains steady near $91,000 after a brief pullback to just above $89,000. The cryptocurrency is now only 2% shy of its record high of $93,445 reached on Wednesday, with a 4.5% gain over the past day. Bitcoin ETFs continue to dominate the narrative, drawing $510 million in inflows on Wednesday, contributing to a six-day total of $4.7 billion. Analyst Checkmate emphasized the dominance of spot ETF-driven demand, noting minimal growth in CME futures activity, indicating a rally grounded in direct Bitcoin purchases.

Meanwhile, the U.S. political landscape has shifted in favor of crypto. The Republican Party has taken control of the House of Representatives, completing a power trifecta alongside Donald Trump’s presidency and Senate gains. This GOP majority is expected to bolster pro-crypto legislation, building on the momentum of crypto-focused bills passed over the past year.

Institutional investors are also doubling down on crypto. Sygnum’s latest survey of 400 global institutional players revealed that 57% plan to increase their exposure to digital assets. A notable 65% expressed long-term bullishness, with 63% considering additional allocations within the next three to six months. This growing confidence underscores a broader shift toward viewing crypto as a viable asset class.

Chart of the Day: Rising Retail Interest in Bitcoin

Google search trends indicate a surge in U.S. interest in “bitcoin,” surpassing levels seen during the Terra/Luna crisis in June 2022. This uptick in retail engagement could spark higher trading volumes and prices, potentially setting the stage for a new speculative boom.