Key Points
- Bitcoin (BTC) reaches a new all-time high of $76,872 following a surge in institutional demand.
- US spot Bitcoin ETFs report record inflows, with BlackRock’s IBIT leading with a net cash inflow of $1.12 billion.
Bitcoin’s price has been on a steady upward trajectory, reaching a new all-time high of around $76,872. This surge occurred following the US election, where pro-crypto candidates, including President-elect Donald Trump, emerged victorious.
The flagship cryptocurrency experienced a 2 percent increase in the last 24 hours, peaking at $76,872 before settling around $76,000 on Friday, November 8, 2024.
Cryptocurrency Volatility and Rate Cuts
In the midst of this, over $250 million was liquidated from the leveraged market. The volatility in the cryptocurrency market is predicted to rise over the weekend due to a recent increase in FOMO traders.
The Federal Reserve and the Bank of England both made rate cuts of 25 bps, now standing at 4.75 percent. This confirms the anticipated surge in global liquidity.
Record Inflows in US Spot Bitcoin ETFs
Data from SoSoValue reveals that US spot Bitcoin ETFs experienced their highest cash inflows since inception, totaling about $1.38 billion. BlackRock’s IBIT led the pack, with a net cash inflow of around $1.12 billion.
Following this, BlackRock’s IBIT now holds 432,674 Bitcoins, valued at over $34 billion. Fidelity’s FBTC came in second with a net cash inflow of about $190 million, holding Bitcoins worth more than $14.5 billion.
Interestingly, no US spot Bitcoin ETF issuers reported a net cash outflow on Thursday, indicating a significant increase in institutional demand. The total assets held by US spot Bitcoin ETFs are nearly $79 billion, a figure that is expected to keep rising.
The US government, facing a balloing debt crisis, is projected to accumulate 1 million Bitcoins in the next five years. Other nations, led by El Salvador, are also gradually accumulating more Bitcoins for similar reasons.
Future Prospects
Bitcoin’s price has consistently closed above the March 2024 peak of about $73.7k, indicating that the bulls are in control. If BTC price manages to close above $74k in the weekly time frame, the next major target will be a six-figure, potentially before the end of this year or early 2025.
The altcoin market is also gaining bullish momentum, as evidenced by the notable rebound of Solana, Dogecoin, and Ethereum, among others. Bitcoin dominance has reached a major psychological resistance level of around 60 percent, and a retrace could lead to the onset of the much-anticipated altseason.
