Bitcoin is currently experiencing an upward trend with a growing number of investors entering the cryptocurrency market. Inflows into Bitcoin exchange-traded funds (ETFs) have seen a significant increase as the price inches closer to $90,000. With $100,000 on the horizon, many are questioning whether Bitcoin will continue its impressive upward trajectory.
Bitcoin [BTC] has entered a bullish phase post the election of Donald Trump as the 47th President of the United States.
Prior to this event, there were already speculations suggesting that Trump’s victory could push BTC towards the eagerly awaited $100,000 benchmark.
As Bitcoin approaches $90,000, the possibility of reaching this milestone seems attainable, though analysts are exercising caution and highlighting the uncertainty surrounding future price movements due to ongoing market volatility.
Impact of Bitcoin’s Approach to $90K
The recent surge in Bitcoin, with an 11% increase in just 24 hours pushing it to $89,700 on November 12th, has resulted in a surge in trading volumes for U.S. spot Bitcoin ETFs, alongside companies like MicroStrategy Inc. (MSTR) and Coinbase Global Inc. (COIN).
The combined daily trading volumes for these assets hit a record-breaking $38 billion, a notable rise compared to the previous high of around $25 million recorded back in March.
In response to these developments, Bloomberg Intelligence and ETF analyst Eric Balchunas commented,
“The Bitcoin Industrial Complex (ETFs + MSTR, COIN) saw $38b in trading volume today, lifetime records being set all over the place, incl $IBIT which did $4.5b, which points to a robust week of inflows. Just an insane day, it really deserves a name a la Volmageddon.”
Elevation in Bitcoin ETF Activity
Not limited to the usual players like Bitcoin ETFs, MSTR, and COIN, BlackRock’s spot BTC ETF also experienced a surge, breaking past trading volume records.
Following Trump’s victory, BlackRock’s spot Bitcoin ETF witnessed an inflow surpassing $1.1 billion in a single day, setting a new standard.
On November 11th, MicroStrategy emerged as one of the biggest beneficiaries, with its stock skyrocketing by over 25% to $340. Coinbase also saw a significant rise of nearly 20%, reaching $324.20—its first time crossing the $300 mark since 2021.
Remarkably, MSTR and COIN were listed among the top five most-traded stocks during early trading, surpassing even tech giants like Apple and Microsoft, as highlighted by ETF analyst Eric Balchunas.
Community Response and Beyond
Fascinated by the impact of Trump’s victory, Sam MacDonald reacted to Balchunas’ tweet, expressing,
“@EricBalchunas just trying to gauge the vibe in Wall Street. Are these numbers turning heads? Seems (from afar) like the Trump effect is pushing everything higher.”
Thus, while the recent surge in Bitcoin’s price has generated excitement, the driving force behind this rally remains uncertain. The coming days will reveal whether Bitcoin can maintain its momentum or if a potential pullback is on the horizon.