Bitcoin - A Bull run is brewing
The FOMO grips Bitcoin. ETFs are racking up record flows on the eve of the American presidential election.
1,000,000 BTC…
BlackRock’s Bitcoin ETF recorded its best day since its launch in January this Wednesday. The previous record was from March 12. The largest American ETF absorbed the equivalent of 872 million dollars in BTC.
In total, Bitcoin ETFs have attracted nearly 25 billion dollars. An increase of over 40% since the beginning of September. The total figure is 43 billion if we add the Grayscale ETF that previously existed in the form of a trust.
Here is the graph representing these daily net flows since January:
Bitcoin ETFs are a huge success, particularly among retail investors. The latter represent over 70% of investments via ETFs. Large institutional investors are also showing up. Notably Morgan Stanley, Millennium, and the State of Wisconsin, which have invested several hundred million dollars.
The CEO of the Bitcoin ETF Bitwise stated this week that “70% of large investment funds hold bitcoins”. For him, Bitcoin will cross the $100,000 mark by 2025.
Overall, ETFs now hold more than one million bitcoins on behalf of their clients. BlackRock is leading ahead of Fidelity. Here is the global ranking:
1) Satoshi Nakamoto (1.1 M BTC)
2) Binance (667,000 BTC)
3) BlackRock (417,000 BTC)
4) Grayscale (254,000 BTC)
5) Microstrategy (252,220 BTC)
6) US Government (203,000 BTC)
7) Chinese Government (194,000 BTC)
8) Fidelity (188,000 BTC)
Ryan Lee, Chief Analyst at Bitget Research, recently talked about the holdings of BlackRock:
Satoshi Nakamoto’s wallet currently holds 1.1 million BTC, and with Satoshi no longer active in the market, this balance remains fixed. In contrast, BlackRock’s holdings are steadily increasing, with the firm now holding nearly 430,000 BTC. If BlackRock’s rate of accumulation continues, it may only be a matter of time before its holdings surpass those in Satoshi’s wallet.
The price of Bitcoin is currently around $72,000, which maintains a bullish sentiment and even keeps a certain “FOMO” alive.
At the dawn of a Bull Run
The American election is certainly not unrelated to the marked rise in Bitcoin, which flirts with its all-time high.
The daily volume of ETFs is close to 5 billion dollars. Here too, we are very close to the historical record:
The recent binge of BlackRock’s ETF is due to several key factors, notably the reduction of interest rates by central banks. The increase in global money supply has the effect of raising the price of all assets.
On the contrary, the volume on Ethereum ETFs represents less than 100 million dollars per day. That is, less than 2% of Bitcoin’s volume. Sophisticated investors have little appetite for a pre-mined shitcoin at 70%…
The anticipation of a victory for Donald Trump also contributes to the rally. The Republican candidate has clearly embraced the cause of Bitcoiners.
“Bitcoin is money and we should pay a capital gains tax when we use it to buy a coffee? I was talking to a friend who told me that it really shouldn’t be the case and I agree”, he stated this Wednesday.
It’s hard to say whether traders will sell the news ahead of Donald Trump’s likely victory this Tuesday, November 5. But in the medium term, a boulevard is opening up.
“In the short term, all eyes are on Bitcoin to see if it can reach a new all-time high”, said Min Jung, a researcher at Presto Research. “If it breaks through the resistance of $73,800, it could trigger a rally, as some are waiting for a breakout to enter the market.”
Another event could also be very bullish: the Microsoft shareholders’ vote on adopting a Bitcoin strategy for its treasury. Results in December.
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Bitcoin, geopolitical, economic and energy journalist.
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.