Bitcoin ($BTC) has surged to a new all-time high, briefly reaching $93,477 on Wednesday. This milestone comes after Donald Trump’s victory in the US presidential election, which sparked renewed excitement in the cryptocurrency market.
The top cryptocurrency’s value has more than doubled this year, driven in part by the launch of Bitcoin exchange-traded funds (ETFs) and a wave of investor interest. However, while Bitcoin soared to record highs, it has since slightly corrected to around $90,000.
Bitcoin’s impressive rally has been closely tied to the rising popularity of Bitcoin ETFs. These funds allow investors to gain exposure to Bitcoin without having to buy and store the cryptocurrency directly, making it easier for people to invest in Bitcoin.
Since the start of 2023, Bitcoin ETFs have gained traction, especially after Trump’s recent election win. During the campaign, Trump pledged to support the US crypto industry, making promises to create a “strategic bitcoin stockpile” and to boost Bitcoin mining in the country.
These promises have sparked interest among investors, leading to record-breaking inflows into Bitcoin ETFs.
In the days following Trump’s election, Bitcoin ETFs attracted nearly $2 billion in inflows, according to data from Farside Investors. BlackRock’s iShares Bitcoin Trust (IBIT) has been a standout, with over $40 billion in inflows since its launch.
This achievement has pushed IBIT past BlackRock’s own iShares Gold Trust, making it the largest ETF launch in the past ten years.
Analyst James Check noted that Bitcoin ETFs are “soaking up almost all of the selling by long-term holders”, indicating that these funds are a major force behind Bitcoin’s recent price surge.
Other cryptocurrencies are seeing similar interest, with Ethereum-based ETFs also experiencing significant inflows. In the first two days of trading, spot Ether ETFs pulled in about $431 million, showing that Bitcoin’s rise has also lifted interest in other crypto assets.
Unprecedented ETF Growth
Bitcoin ETF growth has continued to surge even after the election excitement. On Wednesday alone, $510 million flowed into Bitcoin ETFs in the United States, and over the past six days, these funds have attracted a total of $4.7 billion.
This level of inflow is unusual and suggests that both institutional and retail investors see strong potential for Bitcoin in the near future.
An ETF analyst at Bloomberg, Eric Balchunas, commented that BlackRock’s IBIT fund is now among the top 1% of ETFs by assets.
Despite being only ten months old, it has surpassed all ETFs launched in the last decade, showing the extraordinary demand for Bitcoin investments.
Balchunas added that trading activity in IBIT hit a record daily volume of $5 billion on 13 November, highlighting ongoing interest. On the same day, BlackRock’s Bitcoin ETF saw an inflow of $230 million, further demonstrating the fund’s popularity among investors.
According to Polymarket, a blockchain-based betting platform, there is now a 61% probability that Bitcoin will reach $100,000 by the end of this month.
Bitcoin dominance has also risen to 61%, meaning it holds a larger share of the total cryptocurrency market than it has in recent months. This dominance has contributed to the overall market capitalisation reaching $3.12 trillion, a record high.
Experts predict Bitcoin’s path to $100,000
Many analysts are optimistic that Bitcoin’s price could continue to rise, potentially breaking $100,000 by the end of November. Historically, November has been a strong month for Bitcoin returns.
The chief analyst at Bitget Research, Ryan Lee, explained that Bitcoin’s November performance could reach historical averages, pushing it toward the $100,000 target.
Lee told Cointelegraph: “If history repeats itself and Bitcoin prices grow as projected, a 14.7% increase from the current price level will push the coin well above the $100,000 target for the month.”
Bitcoin’s rally has been one of the best since the banking crisis in March 2023, and some experts see Trump’s presidency as a further catalyst for growth in the US cryptocurrency market. Bitfinex analysts expect that Trump’s administration could pave the way for broader adoption of Bitcoin in the US, potentially boosting its price above $100,000 within months.
However, while there is optimism, some analysts urge caution. Santiment, a market intelligence firm, noted that social media platforms are buzzing with “$100K+ BTC” predictions, which can sometimes signal a peak.
According to Santiment, social media activity spikes often correlate with investor hype, which can lead to a short-term correction.
When retail investors rush to buy out of “fear of missing out” (FOMO), experienced traders often take a cautious approach, waiting for the hype to settle before making new purchases.
As Bitcoin continues to rise, investor sentiment remains high, but analysts are monitoring social media signals for signs of an upcoming pullback.
While the path to $100,000 remains possible, the intense interest could mean a temporary pause before Bitcoin climbs further.
