Bitcoin Surges Above $86,000 for First Time on Veterans Day
It’s Veterans Day and bitcoin has surpassed $86,000 for the first time. This date also marks two years since the FTX crypto exchange filed for bankruptcy. Additionally, US spot bitcoin ETFs launched ten months ago.
Bitcoin Market Insights
Donald Trump's election win and pro-crypto Congressional members have contributed to heightened enthusiasm in the industry. Bitwise’s Matt Hougan predicts BTC could reach $100,000 by year-end, with potential for further increases in 2025. He mentions the possibility of BTC becoming a US reserve asset, a concept introduced by US Senator Cynthia Lummis.
Hougan noted the market's increased difficulty for shorting due to potential strategic reserves being established by the US or other nations. Reports suggest that recent price increases may be linked to nation-state acquisitions of BTC, alongside significant purchases from companies known for Bitcoin accumulation.
Market Sentiment
Analysts encourage those hesitant about crypto investments due to regulatory concerns to reconsider, emphasizing a favorable regulatory environment. However, caution remains as BTC is highly volatile, and experts predict potential short-term dips.
Copper.co's research head, Fadi Aboualfa, highlighted ongoing economic pressures such as high inflation, steady interest rates, and a strong US dollar, questioning which force will weaken first.
Historical Context
BTC reaching a new peak coincides with the anniversary of the FTX bankruptcy filing. The price had dropped to approximately $16,000 at that time. The sentiment shifted following BlackRock's entry into the bitcoin ETF market in June 2023, leading to SEC approvals and subsequent price surges, including BTC surpassing $73,000 shortly after.
Ten months post-launch of US spot BTC ETFs, net inflows reached nearly $1.4 billion on November 7, totaling over $25.8 billion since inception.
These ETFs are critical for institutions seeking bitcoin exposure in a more favorable environment. Planned spot crypto ETFs may gain approval more readily under a Trump administration and new SEC leadership.
Future developments remain uncertain.