Cryptocurrency Bitcoin Soars Beyond $115,000 Due to Renewed ETF Investments

In a recent development, there's a tentative return of ETF inflows, indicating a potential shift in the investment landscape. This revival is particularly noticeable in the realm of cryptocurrency ETFs, with significant capital flows into Bitcoin and Ethereum-based ETFs.

Large asset managers like BlackRock have shown a strong interest in fixed-income ETFs, reflecting a growing mainstream acceptance of these digital assets. In fact, over $27 billion in Ether is currently held in these ETFs, a testament to their growing popularity.

Moreover, thematic ETFs related to artificial intelligence and semiconductors have also attracted substantial inflows from institutional and other investors, with these funds expanding their shares.

Amidst this surge, the $110k-$116k region has shown a scarcity in Bitcoin supply. During the recovery from $112,000 to $114,000, approximately $120,000 worth of Bitcoin was purchased, suggesting opportunistic buying during this period.

However, more robust accumulation is needed to establish long-term support for Bitcoin.

The Fed's credibility plays a crucial role in managing macro-policy risks. The CPI (Consumer Price Index) is another key driver of these risks. To maintain flexibility, a non-committal stance is being maintained over directional conviction regarding macro-policy risks.

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Short-term volatility is moderating, but macro-policy risks remain key drivers in the current investment climate. Stay tuned for more insights on this developing story.