 ▲ Bitcoin (BTC) © |
Bitcoin (BTC) has rebounded amid geopolitical tensions, supported by policy changes and inflows of institutional capital, prompting the market to once again assess the possibility of the beginning of a new bullish phase.
According to crypto-focused media outlet Decrypt on March 5 (local time), Bitcoin rose about 6.8% over the past 24 hours, trading around $72,800. However, it remains approximately 42% below its all-time high of about $126,000 recorded last October.
The primary driver behind the recent shift in investor sentiment is cited as institutional capital inflows. According to BTC Markets, approximately $700 million flowed into U.S. spot Bitcoin ETFs on Monday and Tuesday this week, reversing a four-month streak of continuous outflows. The market is interpreting this not as a simple technical rebound but as a signal of structural change.
Changes in the policy environment are also fueling market expectations. President Donald Trump urged Congress to swiftly pass the U.S. cryptocurrency market structure bill, known as the CLARITY Act, emphasizing the need for clearer regulation of the crypto industry. The bill aims to clearly define whether oversight of digital assets will fall under the Securities and Exchange Commission (SEC) or the Commodity Futures Trading Commission (CFTC).
The integration of crypto infrastructure with the traditional financial system is also accelerating. The banking division of U.S.-based cryptocurrency exchange Kraken recently received approval for a master account from the Federal Reserve, allowing it direct access to the central bank’s payment network. This enables the exchange to process dollar settlements through the Fed’s payment system.
Analysts believe that simultaneous progress in policy, integration with financial infrastructure, and expanding institutional adoption could mark a structural turning point for the market. K33 Research recently noted that technical indicators have reached levels similar to previous market bottoms, suggesting that the strongest selling pressure from the recent downturn has likely already passed.
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