Bitcoin and Ethereum, two of the largest cryptocurrencies in the world, are experiencing a surge in positive sentiments as their exchange-traded funds (ETFs) reach record highs. The pro-cryptocurrency stance of US President-elect Donald Trump is believed to be a driving force behind this bullish trend, pushing both BTC and ETH to unprecedented levels.
According to analysts, Bitcoin has seen a net inflow of $6.5 billion in its ETFs as of November, a significant milestone attributed to the incoming Trump administration. Market commentators are predicting that Bitcoin could soon reach a record high of over $100,000 per coin, with some even speculating that it could settle at around $250,000 by 2025. Since the beginning of 2024, Bitcoin’s price has already doubled, and it saw a 45% increase after the US presidential election. Investors’ optimism towards cryptocurrencies is believed to be fueled by Trump’s promise to create more favorable regulations for digital assets.
As of press time, Bitcoin is being traded at $95,721, with a total market capitalization of $1.9 trillion. While it is inching closer to the $100,000 mark, it is facing resistance at this level.
On the other hand, Ethereum has outperformed Bitcoin since Trump’s election, reaching new heights and surpassing Bitcoin as the leading altcoin. Ethereum ETFs have recorded an all-time high of $1.1 billion in net inflows, with ETH keeping up with the Bitcoin surge. Notably, BlackRock led the charge with its ETHA ETF seeing a total inflow of $2.1 billion.
Reports also indicate that Ethereum’s price has increased by 48% in the last seven days, with the altcoin being traded at $3,619 and having a total market capitalization of over $435 billion.
In a post, digital asset analyst Markus Thielen suggested that Bitcoin’s supply may be dwindling, as there is a decreasing balance of Bitcoin on cryptocurrency exchanges. He noted that only exchanges like Bitfinex, Binance, and Coinbase have sufficient Bitcoin in their inventories. Despite the growing market capitalization of Bitcoin, its dominance has decreased from 60% to 56%, leading some to speculate if the altcoin season has arrived.
Overall, the positive outlook for Bitcoin and Ethereum, fueled by Trump’s pro-cryptocurrency stance and increasing institutional interest, has led to record inflows in their ETFs and significant price surges. Investors are closely watching the market dynamics to see how these cryptocurrencies will continue to perform in the coming days.