The new BTC all-time high came after a 39.5 percent surge in under nine days. The rally not only represents the most substantial 9-day climb since January 2021 for Bitcoin, but is also likely one of the largest short-term capital inflows into any asset class in recorded history. Such momentum suggests that the appetite for Bitcoin is reaching levels of interest typically reserved for mainstream assets.
US-traded spot Bitcoin ETFs have reached $84 billion in assets under management, equivalent to 66 percent of the total AUM of gold ETFs. It is also healthy that there has been some very recent cooling of investor fervour, with approximately $640 million in net outflows reported over the last two trading days of the week. We are not expecting such flows to be sustained, however. With institutional inflows on the rise and ETFs capturing market share at an accelerated pace, Bitcoin’s trajectory seems poised for further long-term ascension, potentially reshaping the balance of capital allocation for years to come.
These developments come against an economic backdrop which indicates continuing resilience in the US economy, but also emerging challenges, particularly to inflation. In October, inflation actually rose, driven by rising shelter costs and used car prices, only offset to a degree by declining energy prices.
The labour market also remains robust, with low layoffs and rising wages fuelling consumer spending. October’s retail sales exceeded expectations, bolstered by steady wage growth and household wealth, signalling continued economic momentum. However, fiscal policies, including proposed tariffs and higher government spending, raise concerns about inflationary pressures, complicating the Federal Reserve’s approach to rate cuts. As markets adapt to these dynamics, the economic outlook remains strong but delicately balanced.
In the meantime, the cryptocurrency landscape continues to evolve. Speculation surrounds SEC Chair Gary Gensler’s potential departure as his most recent remarks recapping his achievements hinted at someone wanting to highlight his legacy, which has featured reforms across equity markets, corporate governance, and crypto regulation.
On the retail front, Robinhood has expanded its cryptocurrency portfolio by adding Solana, Cardano, Ripple, and Pepe to its selection of tradable crypto assets. Meanwhile, momentum is building around the proposal for a US Bitcoin reserve. Michael Saylor and Senator Cynthia Lummis advocate for expanding the US holdings of Bitcoin, with Saylor describing the potential acquisition as “the greatest deal of the 21st century.” These shifts underscore the dynamic nature of the cryptocurrency industry and its rapid adaptation to market demands.
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