Bitcoin's rally fueled by institutional inflows, despite Moody's U.S. downgrade

Bitcoin's recent rally, pushing its price above $105,000, is largely attributed to institutional inflows rather than retail speculation.
21Shares predicts BTC could reach $138,500 this year, highlighting a shift in market dynamics.
Ram Ahluwalia, CEO of Lumida Wealth, stated, "What does [the downgrade] mean for markets? Longer-term – really nothing."
This sentiment reflects a broader consensus that the impact of Moody's downgrade of U.S. government bonds will be minimal.
Unlike previous cycles, the current price movement is healthier, with long-term holders retaining their assets even as BTC approaches its all-time high of $108,786.
On-chain data indicates that market buy volume has steadily increased since 2023, contrasting with earlier bull cycles.
As the market stabilizes, analysts note that institutional interest is a key driver of Bitcoin's price recovery.
Despite fluctuations, the overall trend suggests a more mature market poised for future growth.

Bitcoin's price surged above $105,000, driven by institutional inflows, despite Moody's recent downgrade of U.S. government bonds. Experts suggest the downgrade's long-term impact on markets will be minimal, with BTC's rally characterized by healthier price movements and a lack of retail frenzy, according to analysts.