U.S. Commerce Secretary Signals Support for Bitcoin, Boosting Market Confidence

Bitcoin's latest price was $93900.16, down 1.248% in the last 24 hours. This price movement reflects the ongoing volatility in the cryptocurrency market, where Bitcoin remains a focal point for investors and analysts alike. The recent price drop can be attributed to various factors, including market sentiment, regulatory developments, and macroeconomic indicators.

Secretary of Commerce Howard Lutnick has signaled a significant shift in the U.S. government's stance towards Bitcoin, indicating that the administration is embracing Bitcoin businesses. In an interview, Lutnick outlined a vision that includes regulatory clarity, energy autonomy for miners, and official recognition of Bitcoin in national economic reporting. He emphasized that Bitcoin would be treated as a commodity, not a currency, under the current administration. Lutnick also mentioned the possibility of incorporating Bitcoin into national economic accounts, similar to how gold is treated. This shift in policy is seen as a positive development for the Bitcoin industry, as it provides a clearer regulatory framework and greater legitimacy for Bitcoin-related businesses.

The Department of Commerce’s new investment accelerator, launched on March 31, is a key part of this strategy. The program aims to help companies navigate regulations and permits, with Bitcoin mining firms being among the intended beneficiaries. Lutnick highlighted that miners could build their own power plants near gas fields, reducing dependence on the grid and lowering energy costs. This move is expected to strengthen the domestic mining industry by giving miners more control over their energy sources. The initiative is part of a broader effort to position the U.S. as a leader in Bitcoin innovation and infrastructure, providing a supportive environment for the industry to thrive.

Lutnick underlined that the current administration's approach to Bitcoin stands in stark contrast to its predecessor's, and that Bitcoin companies should feel confident about building their futures in America. He stated that the U.S. is the most extraordinary business place on Earth and pledged that the administration would support the industry’s long-term success. Lutnick insisted that America’s embrace of Bitcoin is irreversible, and his remarks come as the administration pushes to make the U.S. a dominant hub for Bitcoin innovation and infrastructure. This optimistic outlook from the Secretary of Commerce is likely to boost investor confidence in the Bitcoin market, as it signals a supportive regulatory environment and a commitment to fostering growth in the industry.

BlackRock, one of the world's largest asset management firms, has made a significant move in the Bitcoin space. The firm's iShares Bitcoin Trust (IBIT) recorded a staggering inflow of 10,249 BTC in a single day, equivalent to roughly $970 million. This move makes BlackRock the largest holder among U.S. spot Bitcoin ETFs, with nearly 599,000 BTC under management. On-chain analysis shows that BlackRock now holds 582,614 BTC directly, valued at over $55 billion, in addition to its ETF assets. This accumulation is not seen as a speculative bet but rather as BlackRock fulfilling orders from investors buying IBIT. The significant inflow into BlackRock's Bitcoin ETF highlights the growing institutional interest in Bitcoin, as more investors seek exposure to the cryptocurrency through regulated investment vehicles.

Fidelity Digital Assets has expressed optimism about Bitcoin's mid-term outlook, noting that the cryptocurrency is trending toward undervaluation. The firm cited the ‘Bitcoin Yardstick’ metric, which measures BTC’s market cap divided by its hashrate. A lower ratio suggests that Bitcoin is cheaper relative to the energy security of its network. In Q1 2025, the metric stayed between -1 and 3 standard deviations, indicating that Bitcoin is less expensive compared to its network strength. Fidelity also mentioned that Bitcoin is in an “acceleration phase,” where rallies to new highs aren’t uncommon, though they caution a blow-off top could take place. This analysis from Fidelity provides a bullish perspective on Bitcoin's future, suggesting that the cryptocurrency is undervalued and poised for further growth.

Illiquid supply rose from 61.50% to 63.49%, while liquid supply fell by 4%, indicating holders are increasingly committed to long-term positions. The Illiquid Supply Shock Ratio is currently 16% below its 2017 peak. In line with this view, BlackRock’s iShares Bitcoin Trust (IBIT) ETF recorded a significant inflow of $970.9 million on April 28, 2025, marking its second-largest daily inflow since its January 2024 launch. Since April 22, IBIT has amassed over $4.5 billion in net inflows, defying broader market trends where competitors like Fidelity’s FBTC and ARK’s ARKB faced outflows. With over $54 billion in assets under management, IBIT holds a 51% share of the US spot Bitcoin ETF market. This trend of increasing illiquid supply and significant inflows into Bitcoin ETFs suggests that investors are becoming more bullish on Bitcoin, with a growing number of holders committed to long-term positions.