Bitfinex Report: Bitcoin Bull Market Returns

Mars Finance News, on May 12, Bitfinex Alpha released a report stating that Bitcoin has broken through the $100,000 mark for the first time in over three months, showing new strong momentum, after falling 32% from its January historical high. Driven by macro tailwinds—including easing trade tensions and a dovish shift by the Federal Reserve—this breakthrough is consistent with a broader risk appetite shift, with Bitcoin outperforming the stock market. Importantly, capital continues to flow into Bitcoin, as evidenced by the realized market cap reaching a new historical high and ETF inflows exceeding $920 million 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 profitability. Combined with rising spot trading volumes and institutional-led ETF capital inflows, Bitcoin now stands on a structurally solid foundation. As long as macro conditions remain supportive, short-term pullbacks are likely to be quickly absorbed, reinforcing the upward trend and enabling BTC to potentially challenge new highs. Meanwhile, the Federal Reserve maintained interest rates amid concerns about rising inflation and unemployment, highlighting stagflation risks. Fed Chair Powell emphasized the uncertainty of the economic outlook, noting that the Fed needs more data before deciding on further policy actions. Although the market expects a rate cut before July, the Fed remains cautious, prioritizing price stability over quickly responding to slowing growth. In the crypto space, new developments show increasing institutional and governmental interest in the crypto market, though political and regulatory barriers persist. New Hampshire boldly stepped forward in financial innovation, becoming the first U.S. state to pass a law allowing investment in cryptocurrencies and precious metals. This move reflects the growing momentum of digital asset integration at the state level amid evolving national policy debates. In the private sector, BlackRock deepened regulatory engagement by meeting with the SEC to discuss introducing staking features for crypto ETFs and refining options trading rules. This meeting marks a significant development in crypto asset regulation, with BlackRock advocating for staking functionality in Ethereum-based ETFs and expanding product features. This also reflects the SEC's increasingly active regulatory tone in shaping the digital asset landscape.