Bitcoin's rise is strong, with institutional funds continuing to flow in

Bitcoin has performed remarkably recently, soaring from over $20,000 to $34,000 in just half a month, with market sentiment running high. Currently, Bitcoin's total market capitalization ranks ninth globally, second only to Alibaba.

In the past 24 hours, the price of Bitcoin has experienced a pullback. Major cryptocurrencies have also fluctuated, with 38 out of the TOP 50 digital assets declining, among which a certain token saw the largest drop of 11.34%. Nevertheless, the overall speculative enthusiasm in the market remains high.

Analysis suggests that $35,000 will not be the endpoint of Bitcoin's current rise. The main reasons are as follows:

Institutional Entry and Supply Reduction

In the past 30 days, approximately 88,000 Bitcoins have been withdrawn from major exchanges. Among them, a well-known exchange set a new record for daily outflows, with over 3,500 Bitcoins flowing out, speculated to be due to institutional buying.

Currently, 9 funds hold more than 23 billion USD in Bitcoin. Accumulating Bitcoin has become an important investment strategy for several institutions.

A data analyst on a certain blockchain pointed out that as institutional investors enter the market in large numbers, the liquidity of cryptocurrency exchanges is decreasing. A large amount of Bitcoin is being transferred to custodial wallets, and the Bitcoin held by miners is also increasing. This has led to a decrease in market supply, driving up the price of Bitcoin. However, it may also trigger liquidity risks in the future.

Policies are continuously favorable

Despite some negative news, there is still good news from the regulatory side. The U.S. Office of the Comptroller of the Currency has allowed federal banks to use stablecoins for payments and other activities, which is seen as a significant victory for the crypto industry and further solidifies Bitcoin's status as "digital gold."

A well-known financial media outlet also reported on the front page that Bitcoin has surpassed 30,000 USD.

The global market strategy head of a major bank stated that the long-term price target for Bitcoin will exceed $146,000, and it may capture a portion of the market share of gold in the future. Notably, on January 1st, the Bitcoin to gold exchange rate reached a historic high, surpassing the peak during the 2017 bull market.

As predicted by some bank strategists, will the price of Bitcoin reach a consensus range of $50,000 to $100,000? Let's wait and see.