Bitcoin Price Jumps to $72,000 Leads Crypto Market Rally Even As US Equities Sink

Key Insights:

• Market experts believe that the recent Bitcoin price rally comes on the backdrop of a strong retail participation.
• Investors are seeking exposure to Bitcoin using spot Bitcoin ETFs and shares of Strategy (MSTR).
• Donald Trump called on Jerome Powell to cut interest rates ahead of the upcoming FOMC meeting this week.

Despite the crude oil price shooting past $100, Bitcoin price has gained over 2.5% in the last 24 hours, surging to $72,000. This led to a broader crypto market rally with Ethereum (ETH), XRP, Solana (SOL), and other altcoins gaining 2-5%. Thus, crypto has taken a different stand from the US equities, as Dow Jones, S&P 500, and other indices correct heavily.

Retail Players Driving the Bitcoin Price Rally?

After significant selling pressure, Bitcoin’s price has recovered to $72,000. In less than a week’s time, BTC has bounced back more than 10% from the lows of $64,000. Market experts like Mike Novogratz believe that this recovery has been largely led by retail participation rather than hedge funds.

According to Novogratz, many retail participants are gaining exposure through spot Bitcoin ETFs or through shares of Strategy (MSTR). This is a proxy way towards Bitcoin ownership. In this model, investors buy Strategy’s stock, the company raises capital through equity issuance, and the proceeds are used to purchase additional Bitcoin.

In this model, investors buy Strategy’s stock, the company raises capital through equity issuance, and the proceeds are used to purchase additional Bitcoin. He expects BTC to soon enter another phase of price recovery.

Bitcoin ETFs Supporting the Bitcoin Price Rally

Institutional interest in Bitcoin is showing renewed strength as inflows into U.S. spot Bitcoin ETFs accelerate. Despite strong volaitlity due to the Iran-US war, net inflows have remained positive this week, moving closer to $500 million.

Data from BlackRock shows that U.S. spot Bitcoin ETFs recorded net inflows over the past week. A significant share of the activity was driven by the iShares Bitcoin Trust (IBIT), with roughly 75% of buyers reportedly new to the cryptocurrency markets.

Market observers say the trend could indicate a broader shift in market dynamics. This is because traditional investors are using regulated ETFs to gain exposure to Bitcoin.

BlackRock’s iShares Bitcoin Trust (IBIT) recorded net inflows of 658 Bitcoin, valued at approximately $46.36 million. The ETF also posted trading volume of about $1.7 billion during the session. It shows that retail participation in spot Bitcoin ETF market remains dormant.

Trump Demands Immediate Fed Rate Cuts

Amid the escalating Iran-US war and soaring oil prices past $100, US President Donald Trump has called on the Fed for an immediate interest rate cut. In a post on Truth Social, Donald Trump criticized Jerome Powell for holding the rates higher for a long time.

Trump said Powell should begin lowering rates without waiting for the next scheduled policy meeting. He argued that Powell should act very soon on this matter.

The comments come ahead of the Federal Reserve’s upcoming Federal Open Market Committee (FOMC) meeting scheduled for March 17–18. Policy makers will act towards adjusting interest rates ahead.

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