Bitcoin (BTC) Price Aims for $100K Fueled by Rising Demand Led by BlackRock’s IBIT

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As a seasoned analyst with over two decades of experience in the financial markets, I have seen my fair share of bull runs and bear markets. However, the current Bitcoin rally is something truly extraordinary. The data presented here points towards a sustained bullish trend for Bitcoin in the near term.

Bitcoin‘s price surged past $91.5K on Tuesday, hinting at a possible bullish trend in the upcoming days. In the larger picture, the leading cryptocurrency has been creating an ascending symmetrical triangle pattern in its daily chart, following its recent record high of approximately $93,477 hit last week. The 24-hour volatility stands at 0.6%, while the market cap and 24-hour volume are currently estimated at $1.81 trillion and $83.55 billion respectively.

Looking at it from a technical perspective, Bitcoin’s price seems to be moving into the highly respected stage of a long-term bull market known as “euphoria.” Additionally, there has been an increase in fear-of-missing-out (FOMO) traders recently, which can be seen through increased daily trading activity and higher instances of market liquidations.

Based on recent figures, over $316 million worth of cryptocurrencies was withdrawn from the leveraged market within the past day, primarily affecting long-term traders. As pointed out by crypto analyst Ali Martinez in a Reddit post, there’s a possibility that Bitcoin could reach $150,000 soon before undergoing a significant drop, similar to previous major bull markets.

If Bitcoin’s price continues to close persistently below $89K, it seems likely that it will move towards the support area, which falls within the range of $85K to $80K.

Why Bitcoin Price Will Continue to Rally Further

Over the last three weeks, I’ve noticed that the Bitcoin market has been in a phase of exploration, with this period coinciding with Donald Trump’s historic election as the 47th President of the United States. Notably, investment products related to Bitcoin, particularly U.S. spot BTC ETFs, have seen substantial net cash inflows over the past few weeks.

On Monday, U.S. Bitcoin Spot ETFs recorded a significant inflow of approximately $254 million, outweighing the daily Bitcoin mined. In the past seven weeks, these U.S. Bitcoin Spot ETFs, particularly BlackRock’s IBIT, have seen over $9 billion in total cash inflows.

Today, BlackRock’s IBIT will debut its options for public listing and trading on the Nasdaq exchange. This move is aimed at improving the fund’s market liquidity, as mentioned by Alison Hennessy, head of ETP listings at Nasdaq.

Major investors such as MicroStrategy Inc (NASDAQ: MSTR) and Metaplanet Inc have been consistently increasing their Bitcoin holdings in recent times. On Monday, MicroStrategy revealed they had bought an additional 51,780 Bitcoins, valued at approximately $4.6 billion. Now, MicroStrategy owns a staggering 331,220 Bitcoins, which represents more than one percent of the total number of Bitcoins that will ever be in circulation.

Today, Metaplanet revealed they’ve obtained an extra 124.11 Bitcoins, which now brings their total to more than 1,142 Bitcoin holdings.

Bigger Market Picture

It’s anticipated that the value of Bitcoin will surge significantly over the next few months due to an increasing number of countries adopting it as a reserve currency. With more investors shifting their focus from gold ETFs to Bitcoin, there could be a greater emphasis on alternative cryptocurrencies in the market.

Currently, various altcoins such as Ethereum (ETH $3 109), Dogecoin (DOGE $0.38), XRP ($1.10), Solana (SOL $244.0), and many others are indicating a potential bullish breakout towards a parabolic surge. Over the past 24 hours, their volatility has ranged from 0.4% to 2.7%, with Ethereum showing the least volatility. The market caps for these cryptocurrencies range from $56.56 billion (Dogecoin) to $375.58 billion (Ethereum), and their 24-hour volumes vary significantly, with Ethereum leading at $38.83 billion.

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2024-11-19 12:30