The U.S. cryptocurrency market has had a huge boost in optimism since Donald Trump’s election as president elect, with nearly $10 billion put into spot Bitcoin exchange tradable funds (ETFs) in the past five weeks or so.
BlackRock, and anyone with $9.9 billion net inflows since November 5, has combined to raise the total assets in Bitcoin ETFs to an estimated $113 billion, according to Bloomberg. This momentum appears to be supported by Trump’s pro-crypto stance.
And his appointments suggest a much friendlier regulatory environment: appointing a digital asset advocate to chair the Securities and Exchange Commission (SEC) and a newly created White House czar for AI and crypto. Trump has also, surprisingly, backed the idea of a national Bitcoin reserve along the lines of financial reform that has seen bipartisan support, with pro crypto Senator Cynthia Lummis leading the way.
Bitcoin Surges Past $100,000
Just a few weeks ago, Bitcoin hit an incredible milestone, arguably just the first major one, surging past $100,000 for the first time on December 5 before settling for $96,898 as of midnight Monday. However, it’s the length six weeks since 2021 of this latest rally the longest since 2021
that’s a sign that analysts are reluctant to label it as overdone. In an email to CoinDesk, research head at FalconX, David Lawant, said that Bitcoin may require additional positive catalysts for levels above $100,000 to hold. Meanwhile the broader crypto market has enjoyed a revival, as companies who bet on Bitcoin investment strategies show a resurgence.
Corporate Bitcoin purchasing pioneer MicroStrategy has amassed $6.2 billion in convertible bonds this year and is looking to raise another $21 billion. Bitcoin-linked companies like MicroStrategy (up 73%), Marathon Digital Holdings (63%) and Riot Platforms (33%) have echoed BTC 40% rise in the wake of Trump’s election.
Crypto convertible bonds structured with zero coupons are becoming more popular and market experts have taken note. This allows for convertible arbitrage strategy, appealing to investors even if BTC is very volatile. Leveraging access to these instruments has given these firms a first mover advantage in the fast moving crypto space, Raj Imteaz, ICR Capital said.
As BTC market cap nears $2 trillion and corporate crypto assets are rising, Trump’s policies could signal a turning point for the U.S. crypto sector. But to keep growing, regulatory clarity will be needed, as will broader market dynamics.
