Bitcoin is attracting capital again after months of hesitation. The breakthrough above $70,000 is accompanied by stronger interest in spot ETFs, a weaker dollar, and increased demand for assets that investors perceive as protection against long-term currency devaluation. However, the most important change may be happening directly in investors’ minds: instead of selling on rises, they are increasingly buying on dips.
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From “sell the rally” to “buy the dip”
Bitcoin is entering a different market regime than in previous months. Investors previously used higher prices mainly to realize profits and waited for cheaper entry points. Now this pattern is reversing. Dips are beginning to be perceived as an opportunity for accumulation, which may be more important for trend sustainability than the actual series of green candles. The turnaround was also supported by billions in leveraged position liquidations and the subsequent return of capital to Bitcoin ETFs.
Developments in the U.S. economy fit into the same story. The Treasury Department announced an increase in the limit for buybacks of long-term government bonds from $2 to $4 billion per operation. The volume itself is not significant given the size of the U.S. debt market, but it represents an important signal for investors. Together with a weaker dollar and rising gold prices, it supports the idea of the so-called “debasement trade” – seeking assets that could better withstand the loss of purchasing power of traditional currencies.
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ETFs open the door to $100,000, but it won’t be without obstacles
Bitcoin is getting further fuel from institutional demand. Spot Bitcoin ETFs recorded nearly $2 billion in net inflows over five trading sessions, and according to available data, retail investors are also starting to move in the same direction. The rally was additionally accelerated by liquidations of more than $4.5 billion in leveraged positions. However, what’s important is that after the short squeeze subsided, demand continued on the spot market as well, giving the current rise a firmer foundation.
Nevertheless, the path to $100,000 is not an empty highway. Bitcoin has risen approximately 40% from its low around $58,000, and a large portion of the supply is already in profit, which may encourage profit-taking. Above current prices, there are also areas around $87,000, $94,000, and $105,000, where investors waiting to return to their purchase price may sell. A short-term correction would therefore not be surprising. Bitcoin’s further development will thus be closely watched not only by investors but also by companies from the cryptocurrency sector, including the global crypto exchange BITmarkets. If new spot demand can absorb potential sell-offs, the current change in market regime may have much greater significance than merely reaching the $100,000 threshold.
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