Bitcoin has reached a milestone of over $84,000 for the first time ever, driven by favorable changes in the global financial markets, greater adoption, increased growth of BTC exchange-traded funds (ETFs), and Donald Trump’s rise to become the 47th president of the United States.
With a market cap of $1.66 trillion, Bitcoin now ranks as the ninth-largest financial asset, following an exceptional week in which it climbed 23.81% over the past week.
At the time of writing, at around 16:10 UTC, the price of Bitcoin’s price peaked at over $84,600 with positive signs of more uptrend.
Bitcoin price today | TradingView
While several factors contributed to the price surge from optimistic retail investors, most of the increase was attributed to institutional adoption and consistent demand for ETFs.
MicroStrategy buys 27,200 bitcoins
On October 11, Michael Saylor, the founder of MicroStrategy, revealed that the company had purchased an additional 27,200 BTC for approximately $2.03 billion, or about $74,463 per Bitcoin.
MicroStrategy has acquired 27,200 BTC for ~$2.03 billion at ~$74,463 per #bitcoin and has achieved BTC Yield of 7.3% QTD and 26.4% YTD. As of 11/10/2024, we hodl 279,420 $BTC acquired for ~$11.9 billion at ~$42,692 per bitcoin. $MSTR https://t.co/uCt8nNUVqd
— Michael Saylor⚡️ (@saylor) November 11, 2024
It’s important to note that the company’s total holdings have increased to 279,420, acquired at an average price of $42,692 per BTC. This indicates that MicroStrategy has invested around $11.9 billion in total.
Given BTC’s current price of roughly $82,000, the company now holds approximately $22.9 billion of Bitcoin (BTC). As a result, it has an unrealized profit of about $11 billion.
Bitcoin soars on strong ETF demand, not retail FOMO
Cameron Winklevoss, a co-founder of the Gemini exchange, recently expressed his views on Bitcoin’s recent rise above the $80,000 milestone, emphasizing that the usual retail fear of missing out (FOMO) isn’t the driving force behind this surge.
The road to $80k bitcoin was paved with steady ETF demand. Not retail FOMO. Little fanfare.
People buy ETFs, they don’t sell them. This is sticky HODL-like capital. Floor keeps rising.
Where are we in the cycle? We just won the coin toss, innings haven’t started.
— Cameron Winklevoss (@cameron) November 10, 2024
Instead, he attributes this increase to a consistent demand for Bitcoin exchange-traded funds (ETFs), gradually developing over time without generating much attention.
Although there may be less buzz, the trading volume for Bitcoin ETFs has risen. Reports indicate that BlackRock’s Bitcoin ETF (IBIT) achieved $1 billion in trading volume within just 35 minutes.
Read more: BlackRock Adds Bitcoin to Its Global Allocation Fund: Here Is What We Know
As Eric Balchunas, a senior ETF analyst at Bloomberg, noted, the IBIT hit the same trading volume within only 20 minutes the day following the election, indicating that the current record is lower than last Wednesday.
$IBIT has seen $1b in volume in first 35min. Day after election it did that in 20min, so a bit less than last Wed but still pretty intense. Pretty good early indicator of strong inflows this week.. pic.twitter.com/JHzcbg0H6U
— Eric Balchunas (@EricBalchunas) November 11, 2024
“Pretty good early indicator of strong inflows this week,” Eric Balchunas maintained.
However, Winklevoss points out that ETFs are “sticky,” meaning they are typically long-term investments that individuals tend to buy and hold onto instead of quickly selling. This type of demand helps lift Bitcoin’s floor price higher with each passing milestone.
So, what stage are we currently at in the Bitcoin cycle? According to Winklevoss, we are only at the starting point.
“We just won the coin toss,” he said, suggesting that the real action in this Bitcoin rally has yet to begin. Numerous experts forecast a price of $100,000, while others anticipate it could reach as high as $300,000 per Bitcoin in this cycle.
Read more: Dogecoin, dogwifhat, and Floki Lead Market Gainers as Bitcoin Hit $81K
