Bitcoin Surges 16% Year-to-Date Amid Policy Support, Institutional Interest

Bitcoin, the world's largest cryptocurrency by market capitalization, experienced a significant correction after reaching an all-time high two weeks ago. Despite the short-term volatility, the cryptocurrency has seen a cumulative year-to-date increase of approximately 16%. This surge is largely attributed to the friendly policy signals from the Trump administration regarding cryptocurrency assets, which have been a key driver of the recent market momentum. Additionally, market expectations of easing trade tensions between China and the United States have further stimulated risk appetite, leading to a continuous inflow of funds into high-volatility assets like Bitcoin.

Eric Jackson, the founder of Emj Capital, noted that sovereign wealth funds, professional asset management firms, and corporate conglomerates are increasingly investing in Bitcoin, viewing it as a potential reserve asset that could surpass gold. He emphasized that recent public statements from central banks and institutional investors about their interest in the cryptocurrency sector have significantly amplified market attention.

On Tuesday, Bitcoin briefly surged 1.7% to 110,572 dollars, coming close to its all-time high of 111,980 dollars reached on May 22. Ethereum, another major cryptocurrency, saw a substantial increase of 8.3%, leading the gains among mainstream cryptocurrencies.

The cryptocurrency market has recently received a double boost. On one hand, traditional banks are accelerating their entry into the cryptocurrency business, promoting the widespread use of institutional investment tools. On the other hand, the new chairman of the U.S. Securities and Exchange Commission (SEC) signaled a relaxation of regulations during a cryptocurrency roundtable discussion. He clarified that developers of DeFi platforms would no longer be held responsible under federal securities laws for the misuse of their code, and called for the creation of "forward-looking guidelines" to regulate industry innovation. This statement was interpreted by the market as a turning point in regulatory support for blockchain technology.

In response to this news, Ethereum's price rose sharply. The SEC chairman stated, "We should not fear the future. I believe we should not allow a regulatory framework with a century of history to stifle innovation, as these new technologies could disrupt, and more importantly, improve and advance our current traditional intermediary models."

Last week, a cryptocurrency payment company went public on the U.S. stock market at a price of 31 dollars per share, with its stock price surging 245% to 107 dollars in the first week. This overwhelming demand underscored the market's strong interest in cryptocurrency infrastructure. Concurrently, an asset management firm's Bitcoin spot ETF reached an asset management scale of 700 billion dollars, setting a record for the fastest achievement of this milestone in the ETF industry.

A trader at a cryptocurrency trading firm analyzed that the continuous inflow of institutional funds, combined with policy benefits, has driven the spot market to break through key psychological price levels. Traders are closely monitoring the momentum of the spot market as it approaches new historical highs.

Beyond short-term capital flows, the market is also anticipating progress in stablecoin legislation. Industry experts generally agree that clear regulatory rules will encourage traditional financial institutions to participate more extensively in the cryptocurrency sector.

Eric Jackson summarized, "Whether it's increased institutional holdings, the explosion of ETF products, or the reduction of regulatory uncertainty, all positive factors will ultimately be reflected in asset prices."