Investors bullish crypto and tech stocks, BofA says

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According to the Bank of America, the surge of investment activity might be attributed to “animal spirits” triggered by growing investor confidence in potential Federal Reserve rate cuts by mid-year, alongside the economy’s resilience, prompting a renewed interest in higher-risk assets.

The influx of funds into spot Bitcoin exchange-traded funds (ETFs) during the latter half of February has apparently contributed to Bitcoin’s monthly gain, which experienced a surge of nearly 50%, while Ethereum (ETH) witnessed its largest monthly increase since mid-2022, surging 47% to nearly $3,500.

Meanwhile, analysts at Bitwise anticipate a surge in institutional investment into Bitcoin ETFs in the coming months as major financial institutions, known as “wirehouses,” start offering the ETF trades to their clients.

According to Bitwise CIO Matt Hougan, the current market dynamics as a scenario where demand significantly outweighs supply, especially when considering the volume of Bitcoin ETFs purchased in comparison to the amount of Bitcoin mined daily and the anticipated impact of the upcoming halving event. As of press time, Bitcoin is trading at $61, 600, according to data from CoinGecko.