Bitcoin and Ethereum are booming, thanks to a surge in investment and positive vibes surrounding the crypto market. Let’s dive into the details:
Bitcoin’s Record-Breaking Inflows
Bitcoin’s exchange-traded funds (ETFs) just smashed records, seeing a whopping $6.5 billion in net inflows in November. This massive influx is largely attributed to the positive outlook created by President-elect Trump’s pro-crypto stance.
Some are predicting Bitcoin could hit $100,000 or even $250,000 (yes, really!) in the coming years. Since the start of 2024, Bitcoin’s price has already doubled, and it jumped 45% after the election. Trump’s promises of friendlier crypto regulations are a big part of this investor enthusiasm. Currently, Bitcoin is trading around $95,721, though it’s been slightly down recently.
Ethereum’s Impressive Performance
Ethereum is also having a stellar year, even outperforming Bitcoin in the recent rally. Ethereum ETFs saw a record $1.1 billion in net inflows. BlackRock’s ETHA ETF alone saw $2.1 billion in inflows! One report showed Ethereum ETFs gaining over $466 million in the last week of November. Ethereum’s price is up a massive 48% in the same period, currently trading around $3,619.
Is Bitcoin Running Out of Supply?
Analyst Markus Thielen points out that the amount of Bitcoin held on exchanges is shrinking. He suggests that this dwindling supply could be a significant factor driving up the price. Only a few major exchanges like Bitfinex, Binance, and Coinbase have substantial Bitcoin reserves left. While the market cap is growing, Bitcoin’s dominance is slightly decreasing, leading some to speculate that we might be entering an “altcoin season.”
