Several factors are bumping Bitcoin’s price towards $100,000 mark. The cryptocurrency briefly slid below $91,000 on November 26 before racing back to $95,000, upon which 5% rally has attracted the attention of investors and analysts.
The market for Bitcoin is now decoupling sharply from traditional markets primarily US government bonds which previously mimicked Bitcoin’s price movement. Strong institutional interest is a big driver for current Bitcoin trajectory, with exchange traded funds (ETFs), in particular.
Bitcoin Sees $103 Million Inflows
US spot BTC ETFs saw $103 million of net inflows made to them in net on Friday, November 28, reversing a two day outflow streak that endured. Despite market volatility, funds flowed primarily, into Fidelity’s FBTC, Bitwise’s BITB and boosted investor confidence. Fleeing the dollar is what’s currently drawing investors to scarce assets such as BTC.
BTC fixed supply and censorship resistance qualities continue to be viewed as safe haven for major economies facing fiscal challenges. For example, the stability of traditional financial systems has been questioned by France’s rising government debt and a ruble decline in Russia, which has stoked interest in BTC.
Recent Glassnode data conveys that BTC miners are showing a renewed confidence through recent tendency reversal in outflow as average losses ran 10 days in streak. Miners are bellwethers for the market’s health their enthusiasm for BTC is a sign of optimism about continued bullish trends.
Leading corporate BTC holder MicroStrategy is also playing a big part. By doubling its Bitcoin reserves to 331,200 BT coin which now equal 4 % of the total BTC supply in 2033, the company is ready to take control of the entire BTC supply. This long term commitment increases bullish sentiment and artificial areas expect this BTC move above.
With institutional players coming out to support Bitcoin and macro economic forces pushing investors to alternative assets, there is a steep highway to $100,000 perhaps faster than anticipated.
