Emily Walker
Market analysts report that two of the leading cryptocurrencies, Bitcoin and Ethereum, are benefiting from favorable market sentiments as their exchange-traded funds (ETFs) achieve record levels.
The positive outlook is further bolstered by the pro-cryptocurrency policies of US President-elect Donald Trump, which have helped propel BTC and ETH to new heights.
Bitcoin Achieves $6.5 Billion in Net Inflows
Data indicates that by November, Bitcoin’s ETFs saw net inflows reaching an impressive $6.5 billion, a significant achievement linked to the anticipated Trump administration.
Many are speculating that Bitcoin could surpass a historic price of $100,000 per coin; notable author Robert Kiyosaki recently suggested on his X account that Bitcoin could settle at around $250,000 by 2025.
Notably, since the beginning of 2024, BTC’s price has already doubled. Following the US presidential election, it increased by 45%, reflecting investors’ optimism stemming from Trump’s commitments to more favorable regulations for digital assets.
Currently, Bitcoin is being traded at $95,721, reflecting a 1.8% decrease over the past 24 hours, with a market capitalization of $1.9 trillion.
Though BTC is nearing the $100,000 threshold, it continues to face challenges in breaking through this key resistance level.
Ethereum Surpasses Bitcoin
Following Trump’s election, analysts have noted that Ethereum has been outpacing Bitcoin, with the leading altcoin achieving significant growth alongside a general upswing in the cryptocurrency market.
Reports indicate that Ethereum ETFs established a record with net inflows of $1.1 billion, demonstrating ETH’s ability to keep pace with Bitcoin’s upward trend.
On November 29, Ether EFTs drew a net inflow of $333 million, led predominantly by BlackRock’s ETHA, which attracted $2.1 billion. In the last week of November, SosoValue reported that Ether ETFs received over $466 million despite experiencing an outflow of $71.60 million the previous week. Ether’s value also surged by 48% within that week.
As per CoinGecko, the top altcoin is trading at $3,619, boasting a market capitalization exceeding $435 billion.
Declining Inventory
Digital asset analyst Markus Thielen indicates that Bitcoin’s supply may be diminishing, highlighting a decrease in Bitcoin reserves across various exchanges.
Thielen noted on LinkedIn that unlike the late summer period, which saw a temporary influx of Bitcoin, this time, exchange inventories are not being replenished.
Currently, only a few exchanges, including Bitfinex, Binance, and Coinbase, have adequate Bitcoin supplies.
Despite the significant inflows to BTC, some reports suggest that it may be premature to adopt a bearish mindset.
However, he pointed out that while the crypto market capitalization is on the rise, Bitcoin’s dominance has declined from 60% to 56%. This raises the question of whether an altcoin season is on the horizon.
Featured image from DALL-E, chart from TradingView