Originally published on: October 28, 2024
The United States spot Bitcoin exchange-traded funds (ETF) are on track to accumulate a total of 1 million Bitcoin in holdings very soon. Traders are gearing up for potential crypto tailwinds in November, including the US election, possible Federal Reserve interest rate cuts, and Russia lifting its Bitcoin mining ban.
Currently, US spot Bitcoin ETF issuers hold 976,893 Bitcoin valued at over $66.2 billion. This constitutes almost 5% of Bitcoin’s total market cap of $1.34 trillion. To reach the 1 million Bitcoin milestone, the ETFs would need to attract $1.55 billion in net inflows, requiring an average of $301 million in daily net inflows.
Bitcoin analyst Alessandro Ottaviani reported that $3 billion has flowed into spot Bitcoin ETFs in the past two weeks alone, indicating significant investor interest in the digital asset.
Historically, Bitcoin has experienced significant surges following halving events, and analysts predict similar price movements after the recent US presidential election. Crypto hedge fund ZX Squared Capital’s chief investment officer, CK Zheng, believes that regardless of the election outcome, Bitcoin could rally, with a possible Donald Trump victory potentially pushing BTC to $100,000 by the end of the year.
Recent gains in Bitcoin can also be attributed to institutional investors, with Emory University holding over $15.1 million in the Grayscale Bitcoin Mini Trust. The upcoming US Federal Reserve meeting on November 6 and 7 is expected to result in a 25 basis points interest rate cut, which could positively impact the market in the short term.
Moreover, the recent lifting of Russia’s Bitcoin mining ban is viewed as a bullish development for the cryptocurrency, enhancing network decentralization and security. Despite trading at around $67,700 and facing resistance at $70,000, Bitcoin maintains strong support at $65,000.
As the cryptocurrency market anticipates significant movements in November, Bitcoin’s potential for a significant surge remains high, driven by various macroeconomic factors and increasing institutional interest in digital assets.
