Market News
Bitcoin rally driven more by institutional demand than speculation - REUTERS
July 14 (Reuters) - As bitcoin hit a record high on Monday, evidence from institutional flows and derivatives suggested its rally might be more stable and lasting than previous speculative runs.
Bitcoin crossed $120,000 for the first time on optimism over upcoming U.S. House discussions on digital asset regulation, extending its gains this year to about 30%.
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The rise has been fuelled by strong flows into bitcoin exchange-traded funds (ETFs) and rising corporate treasury allocations.
Analysts said bitcoin's surge is driven this time by institutional flows and reflects its evolution into a more stable asset, sought after as investors seek diversification from market volatility and a wobbly U.S. dollar.
Institutional inflows tend to be longer-term and less prone to rapid reversal, lending greater stability and durability to the current rally.
Bitcoin ETFs have made a strong start to July, attracting $3.4 billion in inflows so far. That includes a record $2.2 billion over the past two days, the largest two-day net inflow on record, according to data from Farside Investors.
