Bitcoin value has skyrocketed due to inflation fears, the declining dollar, and geopolitical unrest. The cryptocurrency that has recently seen inflows from every new ETF on the block and is already challenging silver’s place as the fourth-largest global asset.

BTC price at time of writing was US$94,294.96 with a 24-hour increase of approximately 4.4 percent. This increase is indicative of increasing investor confidence and a move towards Bitcoin as a hedge against instability in the traditional market.

Total net inflows into Bitcoin ETFs have topped $1.4 billion in just three days. These massive inflows are a testament to growing acceptance of Bitcoin as a legitimate, mainstream asset class.

Bitcoin's Market Performance

To be clear, bitcoin has had a phenomenal run lately. Its price has fluctuated wildly, setting a low point of US$89,896.28 and rising to a daily high of US$94,320.19. While this specific volatility is par for course on the crypto markets, the larger trend shows significant upward momentum—the kind that could lead to a breakout.

Since its inception the cryptocurrency has experienced a meteoric rise to a current market capitalization of US$1.86 trillion. This valuation places Bitcoin ahead of Alphabet (NASDAQ:GOOGL), making it the world’s fifth-largest asset by market value.

If Bitcoin sticks to its plan, it will soon pass silver to become the fourth most valuable asset on Earth. This particular milestone would cement Bitcoin’s status as a game-changing player in the global financial arena.

Factors Driving Bitcoin's Ascent

Several factors contribute to Bitcoin's recent surge. Analysts are blaming Bitcoin’s momentum on ongoing inflation, a devaluing US dollar, and increasing concerns over geopolitical unrest.

Investors of every ilk—from institutions to individuals—are flocking to Bitcoin as a macroeconomic hedge against these trends. The cryptocurrency's decentralized nature and limited supply make it an attractive alternative to traditional assets during times of economic uncertainty.

The proliferation of Bitcoin ETFs has been an important accelerating factor. US-listed open-end spot Bitcoin ETFs had their best inflow day since January. On Tuesday, April 22, these ETFs pulled in a stunning US$936 million across 10 different issuers. This increase is a clear sign of strong demand from institutional and retail investors.

Regulatory and Corporate Impact

On the regulatory front, new regulations are starting to influence the competitive environment surrounding digital assets. Now, corporations encounter heightened expectations to account for digital assets to market each quarter. This is an incredibly promising trend developing in the financial space.

While this change is a positive step towards transparency, it does subject the earnings to significant volatility inherent in the crypto markets. By increasing transparency, we can bring more institutional investors into the market. Second, corporations that want to hold Bitcoin on their balance sheets are worried about volatility affecting their earnings.

Taking digital assets to market at marked-to-market values represents a huge departure. Perhaps more importantly, it underscores the increasing convergence of cryptocurrencies and the traditional financial system. Whether these regulations are seen as positive or negative, they will assuredly play a role in the adoption, and further stability, of Bitcoin and other digital assets.