- Bitcoin is nearing $70,000 as risk-on sentiment grows.
- Institutional and retail demand are pushing crypto equities higher.
- Bernstein notes market optimism for riskier assets like memecoins and mining stocks.
Bitcoin is once again approaching $70,000.
A rise in tandem of exchange-traded fund inflows, memecoins, and crypto-related stocks is a sign investors are positioning themselves to take on more risk in the hope of higher gains.
“Bitcoin ETF inflows, crypto equity markets, and retail trading sentiment are screaming risk-on,” according to Bernstein analysts.
This growing momentum is driving both institutional and retail demand that could push volatility even higher.
ETF flows
Institutional demand has played a big part in Bitcoin’s latest leg up.
Since their approval in January, spot Bitcoin ETFs have seen cumulative inflows of over $21 billion according to Farside data.
Alongside a growing Bitcoin price, the net asset value of these ETFs has now reached a record $66 billion, representing nearly 5% of Bitcoin’s total market value, according to analysts Min Jung and Rick Maeda of Presto Research.
Bernstein analysts believe the surge in ETF inflows is due to asset managers now focusing on wealth advisers and broader investors, rather than just hedge funds.
This shift is driving more direct demand for Bitcoin.
Crypto equities and retail
Riding the bullish momentum, crypto mining stocks have soared in the last 30 days, Bernstein found.
Riot Platforms is up 37% while CleanSpark and Marathon Digital gained 43% and 21%, respectively.
In the same 30-day period, Bitcoin has seen a 9% gain.
Bernstein also pointed to “continued risk-on sentiment,” with Robinhood’s active traders increasing 10% from last quarter and crypto trading revenue surging 160% since last year.
This optimism is likely to continue, Bernstein said.
Memecoins
Memecoins have made a roaring comeback, drawing in new retail investors driven by the fear of missing out on the next big trend.
The combined memecoin value has tripled to $66 billion over the last six months, Bernstein noted, this has made them “the fastest growing coin category within crypto.”
One standout example is the GOAT memecoin.
Rumoured to have been created by AI, the token’s rise was spurred by endorsements from an AI bot on social media. Its value climbed to over $500 million in just five days before falling back to $370 million.
However, Bernstein predicts these AI-meets-crypto interactions will create rifts with traditional finance, which “may struggle to adapt to the AI economy.”
