Bitcoin hit a new all-time high of $126,200 with $5.67 billion ETP inflows due to fiscal and geopolitical uncertainty favoring the “debasement trade.” Institutional investors dominate as retail participation declines. Bitwise report shows weakening fiat confidence driving demand for store-of-value assets like Bitcoin and gold.

Director and Head of Research at Bitwise highlighted weakening US Dollar Index, soaring gold prices, and Bitcoin’s 27% gain this year. Spot Bitcoin ETFs led inflows with $3.49 billion, followed by Ethereum and ex-Ethereum altcoin products. Onchain data shows whale entities withdrawing over 49,000 BTC from exchanges, indicating a sustainable advance.

Bitcoin advocate Paul Tudor Jones believes US fiscal landscape is the key driver for risk assets. With swelling federal deficit and monetary easing, markets are looking to Bitcoin as a hedge. Despite waning retail participation, institutional inflows continue to support Bitcoin’s rally. Fiscal fragility and dovish policy expectations contribute to long-term Bitcoin upside.

Read more at Cointelegraph: BTC Leads Global Crypto Markets With Record ETP inflows