Bitcoin price nears $90.000 amid Trump-driven crypto rally
Bitcoin is nearing the $90,000 mark, marking its best weekly performance since the 2023 U.S. banking crisis, which analysts say initially fueled Bitcoin’s bull run. On November 11, Bitcoin surpassed $85,000, reaching $88,879 by November 12 — a nearly 30% increase in a week, according to Cointelegraph. This surge, according to Vetle Lunde from K33 Research, marks Bitcoin’s strongest seven-day period since the crisis when Silicon Valley Bank, Silvergate Bank, and Signature Bank suffered collapses, prompting a shift towards alternative assets like Bitcoin.
The ongoing rally reflects investor optimism spurred by the recent re-election of Donald Trump, as his administration is expected to promote pro-business policies and, possibly, more accommodating monetary policies. Arthur Hayes, BitMEX co-founder, suggests that these conditions could push Bitcoin’s price past $1 million, especially if Trump’s administration expands quantitative easing measures. Hayes predicts that if the U.S. reduces its debt-to-GDP ratio from 132% to 70% (the 2008 level), it could require $10.5 trillion in new credit. This immense credit boost could drive Bitcoin prices higher as more investors seek Bitcoin as a hedge against inflation.
Quantitative easing, a strategy where central banks buy government bonds to increase liquidity, generally stimulates economic activity but also leads investors to seek alternative assets like Bitcoin. Hayes argues that with Bitcoin’s limited supply, increased global demand — particularly from regions like China, Japan, and Europe — could significantly elevate its value as people look for financial refuge outside traditional assets. He suggests that “getting long and staying long” in Bitcoin could be a favorable strategy for investors.
This bullish outlook stems from the belief that central bank interventions, along with the anticipated pro-business policies, will make Bitcoin an even more appealing asset in uncertain economic times. Liquidity injections from quantitative easing often lead investors to assets with potentially higher returns, fueling further interest in Bitcoin as its supply dwindles relative to demand. Thus, as central banks inject more liquidity, the demand for Bitcoin could potentially rise, paving the way for further price increases and solidifying its role as a key asset for financial security.
Source: Cointelegraph
Record breaking inflows flood ether ETFs
Investor interest in Bitcoin and Ether exchange-traded funds (ETFs) surged on Monday as Bitcoin neared the $90,000 mark, making it one of the most significant days in cryptocurrency ETF history. Bitcoin (BTC), the leading digital asset by market cap, experienced high inflows, with investors contributing a total of $1.1 billion to Bitcoin ETFs. This influx pushed Bitcoin’s market cap to $1.78 trillion, placing it above silver as the world’s eighth-largest asset by market capitalization.
In the Ether (ETH) ETF market, inflows hit a record $295.5 million. BlackRock’s Ether ETF (ETHA) and Fidelity’s Ether ETF (FETH) each attracted around $100 million, marking unprecedented levels of investor commitment to Ether-related ETFs. These record-breaking numbers underscore the growing appeal of crypto ETFs, especially as they offer a regulated avenue for institutional and retail investors to gain exposure to digital assets.
A significant portion of Bitcoin ETF inflows was directed toward BlackRock’s iShares Bitcoin Trust (IBIT), which garnered $765.5 million, while Fidelity’s Bitcoin ETF (FBTC) accumulated $135.1 million. According to Eric Balchunas, a senior Bloomberg analyst, Bitcoin ETF assets in the U.S. have reached $84 billion, approximately two-thirds of the holdings in gold ETFs. This rapid growth in Bitcoin ETF assets could even surpass gold ETF assets sooner than initially predicted, as demand for digital asset ETFs continues to rise.
Alongside ETFs, shares of crypto-associated companies also saw major gains. Microstrategy (MSTR), known for holding the largest corporate Bitcoin reserve, hit a record-high stock price. Coinbase (COIN), the prominent cryptocurrency exchange, also surged, reaching $320 per share for the first time since November 2021. The trading volume across what Balchunas calls the “Bitcoin Industrial Complex” — a combination of ETFs, Microstrategy, and Coinbase — reached $38 billion, with IBIT alone handling $4.5 billion. The substantial trading volumes and inflows point to heightened investor confidence and a strong week for cryptocurrency investments.
Balchunas noted that the day was so extraordinary in the crypto ETF space that it deserved a unique title, akin to past historic trading events. Currently, Bitcoin is trading at $88,000, while Ether hovers around $3,400, with both assets benefiting from the ongoing influx of capital through ETFs. These developments highlight the increasing integration of crypto assets into traditional finance as institutional interest continues to grow, bolstering the position of Bitcoin and Ether within the global financial market.
Source: Coindesk
Dogecoin soars 51%, reaches $63 billion market cap
Dogecoin’s market cap has reached $63.5 billion after a 51% price surge, marking one of the highest crypto price gains in recent days. The memecoin, inspired by the Shiba Inu dog breed, now ranks as the sixth-largest cryptocurrency by market capitalization, trading at $0.43 — its highest since 2021. Just a month ago, Dogecoin’s market cap was around $16 billion, making this a notable leap, especially amid the current crypto market rally linked to Donald Trump’s presidential victory.
The surge is largely attributed to Dogecoin’s unofficial association with Elon Musk, CEO of Tesla and SpaceX, and owner of the social media platform X. Musk, a known Dogecoin supporter, has used his influence to advocate for the cryptocurrency. According to Nick Ruck, director at LVRG Research, the bullish momentum is due to Musk’s involvement in Trump’s campaign and the expectation that his influence within the Trump administration could positively impact Dogecoin. Speculation is high that Dogecoin, which underperformed during previous bull cycles, may see new highs if Musk’s presence in government fuels its adoption or visibility.
Musk’s substantial support for Trump, including contributions of tens of millions of dollars and daily $1 million giveaways until the election, has further fueled interest in Dogecoin. His financial support and appearances at Trump’s campaign rallies have led some to speculate that Musk might take a prominent role in the Trump administration, with potential influence on policies impacting Dogecoin.
A recent proposal of a “Department of Government Efficiency (DOGE)” under the Trump administration, possibly backed by Musk, has also spurred interest in the token. This hypothetical department would aim to streamline government processes and reduce wasteful spending, aligning with Musk’s broader advocacy for efficiency and innovation. Min Jung, a crypto analyst at Presto Research, explains that this proposed department, if it became a reality, could play into the meme-driven enthusiasm surrounding Dogecoin.
Dogecoin’s popularity among retail investors and its position as the most recognized memecoin give it a unique edge in the market, according to Jung. As Dogecoin continues to be propelled by meme culture and Musk’s endorsement, its market performance highlights the powerful role of social influence and political dynamics in the cryptocurrency world. This recent rally underscores the memecoin’s strength in a market increasingly driven by public figures and online trends, especially as Musk’s influence continues to intersect with high-profile political events.
Source: The Block