Bitcoin Eyes $100K Milestone as ETFs Hit Record $104B in Assets
Bitcoin (BTC) reached unprecedented heights on Thursday, surging past $98,700 and inching closer to the symbolic $100,000 milestone.
The rally marks a remarkable 130% gain year-to-date, with the cryptocurrency’s value more than doubling from its $37,000 level just a year ago.
Trump Victory Catalyzes Surge
The cryptocurrency’s latest surge comes in the wake of Donald Trump’s victory in the 2024 U.S. presidential election, which has propelled Bitcoin prices 46% higher in just over two weeks. Market sentiment has been further boosted by the announced departure of SEC Chair Gary Gensler, whose enforcement approach had drawn criticism from the crypto industry.
Bitcoin ETFs Break Records
U.S. Bitcoin ETFs have collectively surpassed $100 billion in assets under management, approaching the $120 billion held by gold ETFs. BlackRock’s iShares Bitcoin Trust (IBIT) leads with $30 billion in net inflows since January, followed by Fidelity’s Wise Origin Bitcoin Fund (FBTC) with over $11 billion.
Bitcoin Industrial Complex Crosses $70B Trading Volume
The “Bitcoin Industrial Complex” – comprising Bitcoin-related stocks and ETFs – posted record-breaking trading volumes exceeding $70 billion on Wednesday. MicroStrategy (MSTR), which holds more than 331,200 Bitcoin worth approximately $32 billion, has seen its stock trading volumes rival tech giants like Tesla and Nvidia.
Several companies are following MicroStrategy’s lead in adopting Bitcoin as a treasury reserve asset. Cosmos Health, LQR House, and Acurx Pharmaceuticals all announced Bitcoin purchases this week, joining earlier adopters like Marathon Holdings and Semler Scientific.
Market Warning Signs: Correction in Sight?
Despite the bullish momentum, some experts urge caution. Galaxy Digital CEO Mike Novogratz warned of an impending correction in an interview with CNBC, suggesting Bitcoin could retreat to $80,000 levels – a 20% drop from the $100,000 mark.
“The crypto community is levered to the gills, and so there will be a correction,” Novogratz stated.
Shifting Market Correlations
In an interesting market development, Bitcoin’s relationship with traditional safe-haven assets has shifted dramatically. Since the U.S. election on November 5, Bitcoin’s 30-day Pearson correlation with gold has inverted from 0.82 to -0.66, indicating a significant decoupling from the precious metal.
However, Bitcoin maintains strong correlations with broader equity markets, showing correlation scores of 0.7 and 0.76 with the S&P 500 and Nasdaq, respectively.
MicroStrategy’s Bold Move
Adding to the market dynamics, MicroStrategy announced the completion of a $3 billion offering of 0% convertible senior notes due in December 2029. The company plans to use the proceeds to purchase more Bitcoin, potentially adding around 30,600 BTC to its holdings. This offering is part of MicroStrategy’s ambitious “21/21” plan to raise $42 billion over the next three years.
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