- Bitcoin (BTC) has regained its foothold and traded around $106,000 after a tense weekend involving a US strike against Iran.
- Bitcoin’s resilience is attributed to the increased integration into a broader macrofinance system through institutional infrastructure.
- The Bitcoin ETF saw a massive influx ($1.1 billion a day, $350 million a day) and cited it as the main bullish tail.
Bitcoin (BTC) regained its foothold on Wednesday as Asian trading week is ongoing, hovering the $106,000 mark at around $106,000.
This resilient performance comes after a tense weekend when the US bombed bombs at Iranian nuclear lands, with Bitcoin pushing past levels earlier this month when Israel first bombed Iran.
This stability is increasingly attributed to a fundamental shift in Bitcoin’s market structure and a new wave of innovation that flocks to its blockchain, in the face of significant geopolitical disruptions.
Part of the reason why the crypto market has recovered so quickly alongside traditional markets is the increased correlation between the two.
It seems that the era of vacuum-operated Bitcoin is over. “Bitcoin’s sensitivity to traditional asset classes and macroeconomic indicators has evolved significantly over several past market cycles, reflecting the expansion of integration into the broader macrofinance system,” reads a recent report from GlassNode and Avenir Group.
This integration is driven by the development of robust institutional infrastructure. “The institutional infrastructure formed how capital is involved with Bitcoin,” the report continues.
As a result, its market behavior is increasingly dominated by structural liquidity, elder positioning, and regulated access points.
This institutional backbone has been clearly visible again this week. Semir Gabeljic, director of capital formation and investment strategies at Pythagoras Investments, highlighted the important effects of exchange trade funds (ETFs), citing them as the main coccyx.
“The recent huge capital inflows of $1.1 billion in Bitcoin ETFs last week, and even just $350 million today, Gabeljic said, are driving positive trends.
Spencer Yang, a central contributor to Fractal Bitcoin, has added another perspective on Bitcoin’s ability to shake off war jitter very quickly.
He basically argued that nothing has changed about the asset class itself as a result of the Middle Eastern conflict.
The core metrics that long-term investors look for Bitcoin remains the same. Additionally, other bullish on-chain signals are potentially ongoing.
“We’ve seen continued interest in protocols like BRC-20, especially recent upgrades and a lot of attention-grabbing, Rune and Alkan,” added Yang.
So overall, these types of assets have led to an increase in total chain activity.
The key point is that as the Bitcoin market becomes increasingly defined by institutional demand and macroeconomic liquidity cycles, its price action is less about knee responses to headlines and about long-term capital commitments.
This structural change appears to hold Bitcoin firmly at a level of $100,000, despite ambient noise.
Tim Draper’s paper
In addition to this long-term bullish outlook, legendary venture capitalist Tim Draper argues that Bitcoin blockchain is becoming the new epicenter of crypto innovation.
In a recent post on social media platform X, Draper pulls out a compelling parallel, suggesting that Bitcoin once absorbs an idea dedicated to altcoin.
Draper pointed to the growing dominance of Bitcoin, a metric equivalent to “market share” in Crypto’s world.
The figures rose from 40% after the 2017 boom bust cycle to over 50% after the 2021 peak, indicating that Bitcoin is reaffirming control over the broader crypto ecosystem.
Just like how you can integrate or clone success stories from early software such as Lotus 1-2-3, WordPerfect, and PowerPoint to create a powerful suite of software, Bitcoin says it systematically incorporates innovations that were once an exclusive domain of Altcoin.
These include features such as smart contracts, distributed finance (DEFI), ordinal (formation of on-chain digital artifacts), and low-cost layer 2 scaling solutions.
“All successful innovations on other platforms are currently ported to Bitcoin,” Draper writes, describing it as “acceleration” that reflects the integration phase seen in big technology.
He claimed that developers are increasingly drawn to Bitcoin as they are the safest and most valuable blockchain.
Draper, who runs a Bitcoin-centric accelerator with Boost VC, said that the next generation of entrepreneurs are based on Bitcoin, not just because of ideological reasons, but also because their infrastructure and surrounding ecosystems are mature and ready for this new wave of development.
“Smart entrepreneurs are always building on the platform, pulling the strongest gravity,” he writes.
“The platform is Bitcoin.”
