Bitcoin outpaces stocks and gold

Bitcoin pulled back slightly on Wednesday but remains firmly on track for a highly positive week. The world’s largest cryptocurrency has gained around 10% over the past seven days, buoyed by a sustained flow of institutional capital into the crypto market and a wave of optimism among retail investors betting on a further climb towards $100.000.

ETF

That robust demand is clearly reflected in the performance of the US spot Bitcoin ETFs. These funds attracted net new capital of $714.75 million on Tuesday, following inflows of $998.95 million on Monday. Tuesday therefore marked the fourth consecutive trading day of positive inflows, a signal that institutional investors are further increasing their exposure to Bitcoin and giving crypto another chance.

Alongside the strong ETF demand, Bitcoin is also gaining ground against traditional investments. Recent market data shows that the cryptocurrency has outperformed both the S&P 500 index and gold since mid-August. That suggests a growing number of investors now favour Bitcoin over more conventional safe havens and equity markets.

Technical picture

The continued inflows into spot ETFs are also reinforcing the broader optimism among traders. As long as institutional demand holds at its current level or rises further, the path appears open for the rally to continue.

The technical picture looks constructive too. The fact that the price is holding above key moving average levels supports the positive market momentum. Combined with renewed demand on the spot market and strong institutional capital flows, this suggests the current uptrend is gathering further momentum.

Geopolitics alone appears capable of halting Bitcoin’s advance.