Bitfinex Report: Bitcoin Bull Market Returns

BlockBeats News, May 12th, Bitfinex Alpha released a report stating that Bitcoin has once again surpassed the $100,000 mark for the first time in over three months, showing a new strong momentum. Previously, its price had dropped 32% from the January all-time high. Driven by macro tailwinds—including easing trade tensions and a dovish turn in the Fed's tone—this breakthrough is in line with a broader shift in risk appetite, with Bitcoin outperforming the stock market.

Importantly, funds continue to flow into Bitcoin, as evidenced by the achieved market cap reaching a historic high and over $920 million in ETF inflows in the past two weeks. On-chain data also shows a significant reduction in the number of Bitcoin held at a loss, with over 3 million BTC returning to a profitable state. Combined with the continually rising spot trading volume and institution-led ETF inflows, Bitcoin is now on a solid structural foundation. As long as the macro conditions remain supportive, any short-term declines are likely to be quickly absorbed, reinforcing the uptrend and potentially propelling BTC to new highs.

Meanwhile, the Fed has maintained interest rates amidst concerns of rising inflation and unemployment, highlighting the risk of stagflation. Fed Chair Powell emphasized the uncertainty around the economic outlook, stating that more data is needed before the Fed can decide on further policy actions. Although the market expects a rate cut before July, the Fed remains cautious, prioritizing price stability over a rapid response to growth slowdown.

In the crypto space, new developments indicate a growing interest from institutions and governments in the crypto market, but political and regulatory obstacles persist. New Hampshire took a bold step forward in financial innovation, becoming the first U.S. state to pass a law allowing investment in cryptocurrency and precious metals. This move reflects an increasing momentum in state-level digital asset integration amid the evolving national policy debate.

In the private sector, BlackRock deepened its regulatory involvement through meetings with the SEC, discussing introducing collateralization for crypto ETFs and improving options trading rules. This meeting marks a significant development in crypto asset regulation, with BlackRock advocating for introducing collateralization in Ethereum-based ETFs and expanding product functionalities. This also reflects the SEC's increasingly proactive regulatory stance in shaping the digital asset space.