Originally published on: November 28, 2024
Bitcoin has surged to $97,202, reclaiming the $95,000 level after a brief dip below $91,000 on Nov. 26. This impressive 5% rally over two days signals a decoupling from traditional markets, especially US government bonds. As Bitcoin’s price moves independently from other assets, reaching $100,000 by year-end seems increasingly likely.
Investors are shifting away from Bitcoin’s “risk-on” perception due to its stringent monetary policy and censorship-resistant features. With major economies facing growth challenges, investors are turning to scarce assets like Bitcoin for security, driving its performance upward.
Recent events in France and Russia underscore the global economic turmoil unfolding. France’s 10-year bond yields have hit 3%, matching Greece’s, raising concerns over political instability and budget deficits. Meanwhile, Russia’s ruble is plummeting, prompting central bank intervention as inflation skyrockets.
Inflows into US spot Bitcoin exchange-traded funds (ETFs) have further boosted investor sentiment. A $103 million net inflow into Fidelity’s FBTC and Bitwise’s BITB ETFs reversed a two-day negative streak on Nov. 27, signaling renewed interest in Bitcoin.
Miners have also contributed to the bullish market sentiment, ending a 10-day stretch of outflows by increasing deposits into miner-controlled addresses. This accumulation typically signals confidence in the market’s direction and could fuel further bullish momentum.
MicroStrategy’s ambitious Bitcoin holdings, expected to reach 4% of total supply by 2033, highlight growing institutional interest in the cryptocurrency. With onchain data supporting strong bullish momentum, Bitcoin’s journey to $100,000 hinges on macroeconomic conditions and investor sentiment.
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