After the Recent Surge, the $100,000 Bitcoin Expectation Strengthens Again
Bitcoin started the week with a decline, but recovered during yesterday's trading by surpassing the $95,000 level. The cryptocurrency fell to as low as $90,790 mid-week, but shifted direction upwards thanks to the positive sentiment in the market driven by the flow of macroeconomic data and political developments in the United States.
Among the key factors triggering the increase in demand for Bitcoin were reports that Donald Trump's transition team is considering Paul Atkins, a pro-crypto figure, as the new SEC Chairman in place of Gary Gensler. Trump's pro-crypto stance and reports of his team considering former CFTC Chairman Chris Giancarlo for a "Crypto Czar" role have maintained market optimism. Other factors supporting the rise include market participants linking Bitcoin's renewed approach towards the $100,000 level with Trump's consideration of pro-crypto figures for key positions. Additionally, signals from the Federal Reserve regarding "gradual interest rate cuts" are believed to have positively impacted market sentiment.
Apart from these developments, the continued strength of U.S. economic data is also viewed as a positive trend for riskier markets. Recent developments have effectively compensated for the brief decline at the beginning of the week. While crypto investors continue to maintain optimism regarding the Bitcoin trend, some predict that it could reach $100,000 in the near term.
ETF inflows have turned positive. U.S. spot Bitcoin exchange-traded funds saw renewed inflows on November 27, coinciding with an increase in investor optimism. Recent data shows that 12 spot Bitcoin ETFs recorded $103.09 million in inflows on November 27, ending the $561 million in outflows that occurred over the previous two days.
Bitwise's BITB led the inflows with $48.05 million, followed closely by FBTC with $40.24 million. Grayscale Bitcoin Mini Trust and Franklin Templeton’s EZBC contributed $11.99 million and $2.81 million, respectively.
In addition to Bitcoin, Ethereum also saw a significant gain, registering an increase of nearly 10% yesterday, rising to the $3,680 range. This increase was supported by nine spot Ethereum ETFs, which maintained positive fund flows for four consecutive days, attracting $90.1 million in yesterday's trading.