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Bitcoin showed some positive movement on Thursday, rising by 1.4% to $107,751.9 as risk appetite continued to benefit from the ongoing ceasefire between Israel and Iran, though it remained within a familiar trading range. The largest cryptocurrency’s price remained below its weekly high of over $108,000, signaling that while momentum had picked up, it had yet to break out of its recent trading parameters.
Institutional Buying Boosts Bitcoin
This week, institutional demand for Bitcoin has surged, providing some support to its price. Notable purchases include ProCap BTC, the crypto venture of Anthony Pompliano, which acquired nearly $400 million worth of Bitcoin. This came just days after ProCap BTC struck a $1 billion deal to go public via a merger with a special-purpose acquisition company (SPAC). Additionally, Metaplanet, a hotel operator in Japan, made a substantial purchase of $133 million in Bitcoin, positioning itself as the fifth-largest corporate holder of the digital asset. These institutional moves follow a similar pattern from late May, when GameStop made a $500 million Bitcoin purchase.
The uptick in corporate Bitcoin acquisition is driven by the success of companies like Michael Saylor’s Strategy Incorporated, which achieved a significant valuation after purchasing large quantities of Bitcoin. It appears that many corporate entities are looking to replicate this strategy, further supporting Bitcoin’s institutional adoption.
Fannie Mae and Freddie Mac Eye Bitcoin Adoption
In the U.S., the conversation around crypto adoption is gaining momentum, with mortgage giants Fannie Mae and Freddie Mac looking at incorporating Bitcoin as an asset for mortgage applications. The Federal Housing Director, William Pulte, confirmed that he has instructed the agencies to consider crypto as part of their operations. This initiative reflects a shift toward a more favorable regulatory stance towards cryptocurrencies under the current U.S. administration. However, it’s unclear which specific cryptocurrencies will be considered or how these agencies plan to manage the volatility often associated with digital currencies.
Mixed Sentiment in the Broader Crypto Market
While Bitcoin experienced some positive momentum, broader crypto markets showed mixed results as risk appetite cooled after some earlier-week gains. Ether, the world’s second-largest cryptocurrency, rose by 1.7% to $2,472.0, while XRP posted a modest gain of 0.3%, reaching $2.1872. However, other altcoins, such as Solana and Cardano, experienced losses of 0.8% and 2.3%, respectively. Meme tokens, including Dogecoin and $TRUMP, also saw declines, shedding 0.5% and 2.4%, respectively.
Despite the mixed performance of altcoins, the continued institutional interest and adoption of Bitcoin are likely to remain significant drivers of the market’s outlook in the near term, as traditional financial entities increasingly warm to digital assets. As Bitcoin continues to stabilize within its recent range, the broader cryptocurrency ecosystem is navigating both opportunities and challenges brought on by the evolving regulatory landscape and market sentiment.
