Institutions rush to buy BTC on "Double 11," is $100,000 just around the corner?

Foresight News
2024-11-12 11:55:58
Collection
MicroStrategy's Bitcoin holdings have reached an astonishing unrealized gain of $13 billion.

Author: 1912212.eth, Foresight News

The raging market has finally allowed the previously struggling investors to breathe a sigh of relief. Since the conclusion of the U.S. presidential election, the market's FOMO sentiment has intensified, with BTC achieving a rare 7-day consecutive rise on the daily chart. BTC surged from a bottom range of $67,000, breaking through $70,000, and on November 10, it once again broke through $80,000. After continuously overcoming significant resistance levels, BTC is now approaching $90,000, reaching a high of $89,530.

Ethereum, which had previously been subjected to intense FUD, also followed Bitcoin, achieving a 7-day consecutive rise on the daily chart, climbing from a bottom of $2,400 to nearly $3,400, with a peak of $3,387. According to 8marketcap data, Ethereum's market capitalization has risen to approximately $400.7 billion, surpassing Procter & Gamble, and ranking 32nd in global asset market capitalization. After breaking through $212, SOL's market capitalization briefly exceeded $100 billion.

Altcoins have also experienced significant surges, including Meme, AI, public chain, and ecological projects. According to coinglass data, $651 million in liquidations occurred across the network in 24 hours, with $278 million in long positions and $371 million in short positions liquidated.

This market rally is quite strong; what are the reasons behind it?

Institutions Are Still Accumulating

Last night, Michael Saylor stated that MicroStrategy has increased its holdings by approximately $2.03 billion, acquiring 27,200 BTC at an average cost of $74,463. As of November 10, MicroStrategy holds a total of 279,420 Bitcoins, with a total value of $11.9 billion, and an average cost of about $42,692 per Bitcoin.

The market generally agrees that a new bull market has already begun. As a highly influential figure, Michael Saylor's bold purchases undoubtedly represent optimism for the future market.

As of today, MicroStrategy's Bitcoin holdings have achieved an astonishing unrealized profit of $13 billion.

dForce founder Yang Mindao exclaimed, "MicroStrategy has made more money in the past 6 months than all the crypto VCs have made in the past 5 years, and this is just from Michael Saylor's operations."

The data performance of institutions in Bitcoin spot ETFs is also quite impressive.

According to data disclosed by Trader T, the global Bitcoin ETF holdings have exceeded 1.2 million BTC, accounting for 5.7% of the total supply. The top ten include BlackRock IBIT, Grayscale Bitcoin Trust, Fidelity, CoinShares, ARK 21Shares, Bitwise, Grayscale Bitcoin Mini Trust, Purpose Bitcoin ETF, 3iQ CoinShares, and ETC Group Bitcoin ETP.

In terms of specific data for Bitcoin spot ETFs, there have been significant net inflows in the weeks following early October. In the first week of November, there was a net inflow of $2.22 billion, and in the second week, there was a net inflow of $1.63 billion.

Trump Set to Take Office, Market Expects Favorable Regulatory Environment

According to the latest data, the U.S. government is estimated to hold over 200,000 Bitcoins, and Trump stated at the Bitcoin conference on July 28 that if elected in November, he would fire SEC Chairman Gary Gensler, prevent the U.S. from selling its held Bitcoins, and establish a "strategic Bitcoin reserve."

It is well known that the current SEC has been criticized and questioned by industry entrepreneurs and investors for its harsh stance on the crypto industry. If Trump indeed fires and replaces the current officials, it would undoubtedly be a significant positive for the industry.

Trump will officially take office as president on January 20 next year. Recently, The Washington Post reported that Trump is looking for key candidates who are friendly to the crypto industry, and his senior advisors are consulting crypto executives on potential changes to federal policy. Initial discussions have focused on a range of financial regulatory agencies, including the SEC.

According to five insiders, Trump's advisors are considering appointing current regulators, former federal officials, and financial industry executives to important leadership positions, many of whom have publicly expressed support for cryptocurrencies. The discussion process is still in its early stages, and the candidate list is still changing.

Will Bitcoin Break Through $100,000 by Year-End?

On Polymarket, which has gained fame due to the U.S. presidential election, bets regarding whether Bitcoin can break through $100,000 this year have begun to heat up. Current data shows that the market predicts a 54% probability of reaching $100,000, with a daily probability increase of 18%.

However, it is worth noting that this predictive data is dynamically adjusted, and the values may fluctuate significantly with Bitcoin's price movements. The market is often filled with confidence during significant rises and falls into despair during major declines. As shown in the chart, in September and October of this year, the probability of Bitcoin rising above $100,000 did not exceed 20%.

Matrixport recently released a report stating that as the market expects Trump to shift U.S. regulatory policies to a more crypto-friendly environment, the bullish momentum seems unstoppable. With his inauguration date set for January 20, 2025, the market has a few weeks to maintain this upward trend. We have truly entered an unknown territory.

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