Bitcoin has touched its all-time high. Will it break its all-time high in the coming days? Meanwhile, ETFs record performance
After several weeks of uncertainty and boredom, euphoria has finally returned to the crypto market, and suddenly, a new all-time high for Bitcoin is on the way. Its price rose above $73,000 yesterday, while it is now stable at $72,000.
The crypto market is now flooded with optimism, with many wondering whether this is the beginning of the most explosive phase of the 2024 bull market. Furthermore, Bitcoin’s breach of the ATH could trigger a further explosive move, as it could result in the liquidation (closure) of $2 billion of short positions.
Record-breaking Bitcon spot ETFs and retailers
Bitcoin’s recent pump may also have been caused by spot ETFs on Bitcoin, as they have attracted attention and a considerable amount of capital. Last week, there were $870 million in inflows in a single day, primarily driven by BlackRock’s iShares Bitcoin Trust, which continues to dominate the crypto ETF market.
In October alone, Bitcoin ETFs surpassed $3 billion in new investments, a sign of renewed institutional interest. BlackRock and Fidelity are among the main beneficiaries and architects of this boom, helping to bring BTC held by spot ETFs close to the historic one million mark.
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However, while institutional interest drives the market, it is interesting to note that retailers (individual investors) still need to enter the market en masse, as shown by searches on the major search engines. However, Bitcoin’s approach to its ATH could catalyse a new wave of retail investors, who might be attracted by the FOMO that invades newspapers and social networks at these junctures. At least, this is what has happened during past cycles.
Bitcoin in pension funds: the Florida case
Another positive news from the crypto world is not concerned with the price of Bitcoin and its possible ATH; it is a more institutional topic: pension funds. Florida CFO Jimmy Patronis recently requested a feasibility report from the state’s board of trustees to invest part of pension funds in cryptocurrencies, focusing on Bitcoin. Patronis seems to be following the example of Republican candidate Donald Trump, who, during the ‘Bitcoin 2024’ conference in Nashville, proposed creating a national reserve with Bitcoins confiscated from criminals and failed companies.
Patronis’ proposal envisages the introduction of a pilot programme of investment in digital currencies within the Florida Growth Fund to test the possibility of integrating Bitcoin as a reserve to protect citizens’ savings from dollar devaluation and inflation. This vision is strikingly in contrast to the situation in Italy, where there is a discussion of increasing taxes on technology assets. While Italy considers higher taxation, Florida explores using Bitcoin as a potential tool to restore the pension system.
Finally, how about not mentioning the US elections, as the vote is less than a few days away and could add another element of volatility to the markets? Indeed, investor enthusiasm increases with Donald Trump’s chances of victory, which is considered more favourable towards the crypto sector. Some analysts suggest that his eventual pro-Bitcoin policy could consolidate BTC as a strategic reserve, fuelling an even stronger bull run.In short, the current scenario, characterised by the support of institutional investors and a possible influx of retailers, could allow Bitcoin to reach a new ATH soon. In any case, monitoring the market with rationality and scepticism remains crucial, remembering that euphoria can be just as dangerous as panic. Bitcoin’s explosive rallies are certainly exciting, but as always, caution is in order in the crypto world.
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