Author: 636Marx

First, the author will state the conclusion directly.

Bitcoin has evolved from a niche market to an important player in global finance. Governments and institutions around the world, aside from the United States, are closely monitoring this development. The UK will introduce new regulations for its domestic crypto industry this month, aiming to position the UK as a global digital asset hub. These significant developments resonate with the recent record inflows into Bitcoin ETFs, with expectations that Bitcoin may soon break the $100,000 mark.

UK Pushes for Crypto Regulation

In recent months, the UK has adjusted its stance on the regulation of digital currencies. Historically, UK lawmakers have been cautious about digital assets, wary of risks such as fraud, money laundering, and market volatility. However, as other major economies like the US and EU take steps to attract crypto businesses, the UK government has adopted a more assertive position.

The UK Treasury is drafting regulations to provide clearer guidance for crypto businesses, particularly those involving stablecoins and staking. These regulations will clarify how stablecoins can be issued, managed, and used in the UK, thereby attracting more operators to the UK market. The UK is also advancing regulation of staking activities by providing regulatory transparency.

The UK's Property Bill recognizes digital currencies and digital assets like NFTs as personal property, legally defining digital assets to protect investor rights and resolve ownership disputes. This recognition offers stronger legal protection for investors and greater accountability for digital asset trading firms, signaling to global crypto investors that the UK is committed to creating a safe environment for digital innovation.

Impact of US Digital Currency Policy

Trump's support for digital currencies has resonated globally, and as speculation about favorable policies for digital assets increases, interest from crypto investors in the US market is also growing. Trump hinted at bold measures, such as designating Bitcoin as a strategic reserve asset and eliminating capital gains tax on US-issued digital currencies.

Trump: "They have them paying tax on crypto and I don't think that's right. Bitcoin is money and you have to pay capital gains tax if you use it to buy a coffee? I was talking with a friend he said 'it really shouldn't be taxed' and I agree. Maybe we get rid of taxes on crypto and replace it with tariffs."

If the US continues to ease its regulatory stance, countries like the UK will feel pressure to compete for digital currency talent, investors, and businesses. Trump's pro-crypto approach has sparked a global "crypto race," with countries vying to create the most attractive regulatory environments. The UK's recent initiatives are a partial response to this anticipated shift, aimed at preventing businesses and investors from moving to a more favorable US policy environment.

Bitcoin Spot ETFs See Terrifying Inflows

As the UK and US compete for dominance in digital currencies, traditional financial institutions' interest in Bitcoin has surged to record levels. Recent data shows that Bitcoin spot ETFs saw an astonishing $510 million in inflows in a single trading day. BlackRock's IBIT Bitcoin spot ETF led with $230 million, while Fidelity's FBTC Bitcoin spot ETF contributed $186 million, bringing total inflows to $29.15 billion.

These inflows indicate confidence in Bitcoin as a long-term asset, with the launch of spot Bitcoin ETFs allowing institutions to invest in Bitcoin without managing actual digital currency holdings. For large investors facing various risks of directly holding Bitcoin, these ETFs provide a simpler, regulated option.

The appeal of Bitcoin ETFs lies in their transparency and convenience, offering institutional investors exposure to Bitcoin without the need for specialized infrastructure or crypto custody knowledge. This convenience directly drives Bitcoin to new highs.

Ethereum Begins to Follow Bitcoin's Footsteps

The second-largest digital currency, Ethereum, has also seen similar growth in ETF inflows, with spot Ethereum ETFs recording positive inflows for six consecutive days, adding approximately $147 million in recent weeks. This strong performance indicates that institutional investors are diversifying into other digital assets, with Fidelity's FETH Ethereum spot ETF attracting significant investment.

Why $100,000 is So Important

The author believes that historically, November has been a strong month for Bitcoin, with an average monthly return of over 44%. This November, Bitcoin has already risen over 20%, and with just a 14% increase, BTC would break the long-anticipated $100,000 mark.

In addition to historical trends, the continued interest rate cuts in the US and the reduced supply following Bitcoin's halving contribute to a bullish outlook. Lower interest rates typically make high-growth assets like Bitcoin more attractive, as the opportunity cost of investing in traditional assets decreases.

Bitcoin's recent price movements and trends have made headlines across various apps. This will mark Bitcoin's acceptance by the public, becoming a more efficient financial tool and a truly mature financial asset.