Key Points
- Bitcoin’s price is expected to reach $100K, with its valuation surpassing $2.08 trillion.
- Institutional investors and U.S. spot BTC ETF issuers are driving the high demand for Bitcoin.
Bitcoin’s price is projected to hit $100K soon. The flagship cryptocurrency recently reached a new all-time high of around $99,486 during the early European session. With less than 1% away from hitting the coveted target, Bitcoin’s daily average trading volume surged to over $113 billion.
For the first time in its history, Bitcoin’s fully diluted valuation exceeded $2.08 trillion, putting it on the brink of surpassing Alphabet Inc (NASDAQ: GOOGL). At present, Bitcoin’s total valuation is higher than that of Saudi Aramco Base Oil.
Bitcoin Demand and Volatility
The current surge in Bitcoin’s price has led to increased crypto volatility, resulting in heavy liquidations in recent days. Market data reveals that over $400 million was liquidated from the crypto-leveraged sector in the past 24 hours. Interestingly, most of these involved short traders, thus boosting the momentum of the ongoing short squeeze.
The demand for Bitcoin is primarily driven by institutional investors and U.S. spot BTC ETF issuers. As of November 21, these issuers had registered a cumulative total net inflow of about $30 billion, holding nearly $106 billion in assets under management.
Institutional Investments
On Thursday, BlackRock’s IBIT saw a net cash inflow of about $608 million, currently holding nearly $48 billion in total assets. Fidelity’s FBTC registered a net cash inflow of about $300 million on Thursday, currently holding nearly $20 billion.
On-chain data analysis reveals that a whale investor with a balance of 25,298 BTCs, worth over $2.5 billion, has purchased a total of 3,577 coins in the last four days. Meanwhile, MicroStrategy Inc (NASDAQ: MSTR) made the biggest Bitcoin move this week after purchasing 51,780 BTCs earlier this week and now holds 331,200 coins.
MicroStrategy announced on Thursday that it completed a $3 billion offering of convertible notes, and is likely to purchase more coins in the coming days.
Midterm Expectations
Bitcoin price entered its discovery phase three weeks ago, and the bullish momentum has been gaining strength. Based on previous bull market cycles, Bitcoin price could reach the range between $137K and $150K before experiencing a major correction.
Meanwhile, the altcoin industry led by Solana, Cardano, and Ripple Labs-backed XRP has been gaining significant traction. Moreover, Bitcoin’s dominance has been hovering around a major psychological resistance above 60%.
A potential reversal for the Bitcoin dominance in the weekly timeframe will yield the much anticipated parabolic rally for the altseason in the near term.
