Bitcoin Surges 118% to New Highs on Institutional Buying

Bitcoin has reached several new all-time highs in the second half of the year, most recently surpassing $118,000. This surge in price is attributed to increased corporate bitcoin buying and the expectation that more institutional platforms will provide access to the asset. John Glover, CIO of Ledn, predicts that bitcoin could reach $136,000 sooner than initially thought, possibly this year, followed by a correction to between $91,000 and $109,000 before moving higher again.

Mark Palmer of Benchmark identifies the CLARITY Act as a significant upcoming catalyst for the broader crypto ecosystem. This framework aims to determine whether crypto tokens are commodities or securities. If passed into law, it could remove regulatory uncertainty and encourage institutional investors to enter the space more confidently.

The crypto mergers and acquisitions (M&A) landscape has seen a record 78 transactions in the second quarter, indicating a long-term uptrend. This trend is driven by the increasing acceptance of the value proposition of crypto and blockchain technology. Eric Risley, founder of Architect Partners, expects that traditional financial services organizations, including banks and payment businesses, will play a significant role in future M&A activities. The next generation of decentralized applications (dapps) beyond price speculation and payments is also a major area of interest.

Assets under management in crypto investment products have reached an all-time peak of $188 billion. Spot bitcoin exchange-traded funds (ETFs) in the US have seen net inflows of $51 billion since their debut 18 months ago, with US ether ETFs also experiencing significant inflows. More crypto ETFs, both single-asset and index, are anticipated this year, although timelines remain uncertain. Investors seeking crypto exposure through equities are watching for more public listings, following Circle’s IPO.

The tokenized securities market is expected to reach $50 billion by 2025, with major players like Bitwise and VanEck predicting significant growth. The entry of traditional financial institutions into tokenized trading is anticipated, with companies like Charles Schwab actively exploring opportunities in the digital asset space. The crypto industry continues to evolve rapidly, with new developments and milestones expected in the coming months.