Bitcoin is showing no signs of being “overheated” despite reaching new all-time highs this week, according to analysts pointing to fundamentals that suggest more potential gains.
“The market does not look overheated from a fundamental perspective,” stated Alex Thorn, Galaxy’s Head of Research, in a Nov. 7 market report viewed by Cointelegraph. Nansen analyst Aurelie Barthere shared a similar view, noting, “Bitcoin crossing its all-time high with heavy volume is a clear signal of ongoing positive momentum following the elections,” as stated in her Nov. 7 report.
Barthere highlighted that after Donald Trump’s victory in the U.S. presidential election on Nov. 5, traders have been eager to “re-risk,” which has contributed to the recent surge in crypto prices.
In addition, Bitcoin’s Open Interest (OI) — the total number of unsettled Bitcoin derivative contracts — has “pushed slightly higher to new yearly highs,” Thorn pointed out. Despite this, funding rates have remained mostly unchanged. A stable or positive funding rate indicates trader optimism, as buyers are willing to pay a premium to hold long positions.
As Cointelegraph reported on Nov. 6, Bitcoin’s OI reached $45.4 billion, a 13.3% increase from Nov. 5. At publication, Bitcoin’s funding rate on Binance stands at 0.0100%, according to CoinGlass data.
Thorn believes Bitcoin and other cryptocurrencies will likely trade “at levels significantly above today’s all-time high over the next 12-18 months.”
Cointelegraph also reported that technical analysts anticipate Bitcoin rallying to the $78,000 to $85,000 range. Bitcoin is currently “consolidating” above its previous all-time high of $73,679 and “wants continuation,” as crypto trader Matthew Hyland noted in a Nov. 7 post.
Meanwhile, the U.S. Federal Reserve implemented a further 25-basis-point rate cut on Nov. 7, an anticipated move following earlier cuts in September. Lower rates are generally bullish for crypto assets, as traditional assets like bonds and term deposits become less attractive to investors.
BlackRock’s spot Bitcoin exchange-traded fund (ETF) saw its sixth day of net outflows since launching in January, as institutional investors turned cautious on U.S. election day.
According to CoinGlass, BlackRock’s iShares Bitcoin Trust recorded an outflow of $44.2 million on Nov. 5. This marked the ETF’s first net outflow since Oct. 10, when $10.8 million exited the fund. Across all 11 U.S. spot Bitcoin ETFs, net outflows reached $116.8 million, with Fidelity Wise Origin Bitcoin Fund leading the trend with a $68.2 million outflow. Bitwise Bitcoin ETF was the only fund to record an inflow, bringing in $19.3 million.
It was also the third consecutive day of outflows for U.S. spot Bitcoin ETFs, following a record-breaking $541.1 million outflow the previous day. Spot crypto markets saw a surge after the U.S. trading day as election results emerged, pushing Bitcoin to an all-time high of $75,000.
Apollo Crypto’s Chief Investment Officer, Henrik Andersson, explained to Cointelegraph that Bitcoin is “currently the election trade for traders globally.” By analyzing betting markets and traditional data sources, Andersson estimated an 80-90% probability of a Trump victory. He suggested that “Bitcoin might, in the short term, have done 80% of the move already where it is now at above 74,000” and projected a potential rise to $100,000 by year-end if Trump wins.
ETF Store president Nate Geraci commented in a Nov. 5 blog post that while the election’s impact on investments is often overstated, changes in regulatory leadership, especially within the SEC, could influence ETF innovation significantly. He noted, “Nobody knows for sure how this all might play out–and the best longer-term solution is the implementation of a bipartisan, comprehensive crypto framework–but it seems highly likely this election will affect the speed of crypto ETF innovation one way or another.”
BlackRock, the world’s largest asset manager, recorded over $1 billion in inflows to its Bitcoin exchange-traded fund (ETF) on Nov. 7, coinciding with Bitcoin’s rise to all-time highs.
Data from Farside shows that BlackRock’s spot Bitcoin ETF (IBIT) saw $1.1 billion in inflows, reclaiming this status after two days of outflows that totaled $113.3 million.
Bitcoin surged to nearly $77,000, with CoinMarketCap recording a high of $76,943. IBIT accounted for nearly 82% of the total $1.34 billion in inflows seen across the 11 U.S.-listed spot Bitcoin ETFs. The Fidelity Wise Origin Bitcoin Fund followed, with $190.9 million in inflows, while the ARK 21Shares Bitcoin ETF (ARKB) trailed at $17.6 million.
The surge in spot Bitcoin ETF inflows was noted in CoinGlass data, reflecting traders’ anticipation of continued strong inflows. “Expect another massive day tomorrow,” posted crypto trader The Bitcoin Therapist to 141,400 followers on X. Financial analyst Rajat Soni echoed the sentiment to his 100,400 followers, advising them to “buckle up,” while crypto commentator Zia ul Haque added, “Welcome to PumpVember.”
This large inflow followed a high trading volume day. Bloomberg ETF analyst Eric Balchunas admitted surprise at the volume, despite predicting strong inflows based on trading data from the previous day. “Told y’all it was prob gonna be big, altho even I am surprised it’s that big, by far biggest one day flow of any btc etf ever,” Balchunas shared on X.
Balchunas also highlighted that on Nov. 6, IBIT recorded nearly $1.1 billion in trading volume within the first 20 minutes after markets opened, following Donald Trump’s victory in the U.S. presidential election.
Bitcoin’s Open Interest (OI) surged to a record high as its price climbed to $75,000, with some analysts forecasting further gains.
Bitcoin’s OI — which measures the total number of outstanding Bitcoin derivative contracts, such as options and futures — reached $45.4 billion, marking a 13.3% increase since Nov. 5 when Bitcoin broke past its previous high of $73,800 set in March, according to CoinGlass data.
OI rises when more new contracts are opened than closed, whether from long positions by buyers or short positions by sellers. Traders seem optimistic that Bitcoin’s price won’t fall back to its previous high of $73,679 anytime soon, as $1.26 billion in short positions are currently at risk of liquidation if it does.
At the time of writing, Bitcoin was trading at $75,792, according to TradingView, and many analysts are viewing the current price range as ideal.
Veteran trader Peter Brandt wrote in a Nov. 6 X post that “Bitcoin is now in the sweet spot of the bull market halving cycle that should top in the $130K to $150K range next Aug/Sep. I measure cycles differently than most.”
Other analysts also believe Bitcoin has significant upside. Crypto analyst Rajat Soni suggested it’s still early days for Bitcoin: “We are so early in Bitcoin’s adoption that you can still exchange pieces of paper ($, €, £, etc.) for BTC because most of the world thinks fiat currencies are backed by something tangible.”
Similarly, crypto analysis firm CryptoQuant noted that Bitcoin’s recent highs don’t necessarily indicate it’s overvalued. “Bitcoin’s new all-time high doesn’t mean it’s overvalued relative to its cost basis,” the firm stated in a Nov. 6 X post.
Bitcoin’s continued climb in price, combined with record-high OI, has led to growing optimism among crypto market analysts that the asset may have more room to grow in this cycle.
U.S. crypto stocks closed with major gains, many in double digits, following Donald Trump’s election victory and Bitcoin’s new all-time high.
Coinbase Global Inc (COIN), a significant donor in the election, saw the largest surge on Nov. 6, ending up 31.11% at $254.3 and now up 62.1% year-to-date, according to Google Finance.
Robinhood Markets Inc (HOOD) also soared, jumping 19.6%, while Bitcoin miner MARA Holdings Inc (MARA), formerly Marathon Digital, saw a similar increase.
MicroStrategy Inc (MSTR), known for its BTC holdings, closed over 13% higher.
Other U.S. Bitcoin miners also saw strong gains: Riot Platforms Inc (RIOT) rose 26%, CleanSpark Inc (CLSK) increased by 23%, and Hut 8 Corp (HUT) gained 11%.
Traders seem optimistic about the prospect of Republican control in both Congress and the White House, which could ease the path for two GOP-backed crypto bills.
President-elect Trump campaigned on a pro-crypto platform, even proposing a national Bitcoin reserve.
He appears on track to secure 312 electoral votes, well above the 270 needed, with leads in key swing states like Nevada and Arizona, as reported by the Associated Press.
Trump’s Republican party has gained a majority in the Senate and leads in the House, though 40 seats remain undecided.
The Republican-controlled Senate, taking office in January, may push forward the Financial Innovation and Technology for the 21st Century Act (FIT21), which seeks to place more crypto oversight with the Commodity Futures Trading Commission.
The bill had stalled in the Senate after passing the House in May.
The GOP’s proposed stablecoin regulatory framework could also gain traction with a House majority, as it stalled after passing the Financial Services Committee last July.
Bitcoin’s soaring price has been another catalyst for stock price jumps, hitting a record $76,509.56 on Coinbase just before the New York Stock Exchange closed at 4 p.m. (9 p.m. UTC), according to TradingView.
BlackRock’s Bitcoin exchange-traded fund (ETF) saw a record-breaking day of trading following Donald Trump’s victory in the U.S. presidential election.
In a Nov. 6 post on X, Bloomberg ETF analyst Eric Balchunas noted that the iShares Bitcoin Trust (IBIT) experienced its “biggest volume day ever,” with daily trading reaching over $4.1 billion.
“For context, that’s more volume than stocks like Berkshire, Netflix, or Visa saw today. It was also up 10%, its second-best day since launching,” Balchunas added.
Other Bitcoin ETFs also enjoyed one of their best trading days since “the crazy early days” in January, with most funds doubling their average volume, according to Balchunas.
IBIT’s record day came amid bullish momentum for Bitcoin, which reached a new all-time high of $76,500 on Nov. 6, just a day after the pro-crypto Trump was elected president.
Bitcoin’s price has since slightly retraced to $75,267, as reported by TradingView.
Bitcoin has dominated the ETF landscape this year, securing six of the top 10 most successful launches in 2024, according to Nate Geraci, president of the ETF Store.
Analysts suggest Trump’s pro-crypto stance and his promises for favorable policies could benefit assets beyond Bitcoin.
In 2024, asset managers have already filed for ETFs holding altcoins such as Solana, XRP, and Litecoin, while waiting for approval on crypto index ETFs designed to hold diverse token baskets.
On Oct. 25, Balchunas described these crypto index ETF filings as “call options on a Trump victory” in the presidential race.
Many traders and analysts now predict Bitcoin’s price will continue to rise, with Trump—a pro-crypto Republican—heading to the White House.
Fadi Aboualfa, head of research at Copper.co, told Cointelegraph that a $100,000 target for Bitcoin is “quite possible” by Jan. 20, the date Trump will be inaugurated.
Bitcoin exchange-traded funds (ETFs) in the U.S. saw their second-largest day of outflows on Nov. 4, just before the country’s highly anticipated election.
According to CoinGlass, the 11 spot Bitcoin ETFs recorded a net outflow of $541.1 million. BlackRock’s iShares Bitcoin Trust ETF (IBIT) was the only one to secure inflows, totaling $38.4 million.
This marks the largest outflow day for Bitcoin ETFs since May 1, when $563.7 million was withdrawn after Bitcoin dropped 10.7% to $60,000.
Ahead of the Nov. 5 U.S. election, Bitcoin traders are trimming their positions, causing Bitcoin to fall 4.6% over the past week and 1.7% in the last 24 hours, settling around $68,000. The Fidelity Wise Origin Bitcoin Fund (FBTC) experienced the largest outflow at $169.6 million, followed by ARK’s 21Shares Bitcoin ETF (ARKB) with $138.3 million.
Nov. 4 also marked the second consecutive trading day of outflows after seven days of consistent inflows, as reported by CoinGlass.
Grayscale’s two Bitcoin funds collectively faced $153.2 million in outflows. The Grayscale Bitcoin Trust (GBTC) lost $63.7 million, while its smaller counterpart recorded $89.5 million in outflows, representing the fifth and third largest outflows for the day, respectively.
In the prior week ending Nov. 1, U.S. Bitcoin funds had a net inflow of $2.2 billion, though it ended with a $55 million outflow.
CoinShares head of research, James Butterfill, noted that inflows were driven by optimism for a potential Republican victory. “As polls have turned, we saw minor outflows on Friday, highlighting how sensitive Bitcoin is to the U.S. elections at present,” he explained.
The election polls show Kamala Harris and Donald Trump nearly tied, with Harris holding a slight 1.2-point lead as of Nov. 4, according to FiveThirtyEight. Meanwhile, on crypto betting platform Polymarket, Trump’s odds dipped from 67% on Oct. 30 to 59% on Nov. 3.
The Republican candidate remains favored by the crypto industry, with some traders speculating that a Trump victory could propel Bitcoin to $100,000.
A consortium of traditional finance and crypto companies, including Robinhood, Galaxy Digital, Kraken, and Paxos, has come together to support a new stablecoin pegged to the U.S. dollar.
In a Nov. 5 statement, blockchain infrastructure company Paxos announced that this “open network” is designed to drive global adoption of stablecoins.
“The lack of competition in the regulated stablecoin market has prevented the industry from reaching its full potential. USDG upends this dynamic with a more equitable model that will bring mainstream participants into the ecosystem and accelerate new stablecoin use cases,” stated Kraken co-CEO Arjun Sethi.
The network’s aim is to support Paxos’ USDG stablecoin, which the firm launched on Nov. 1 and is currently available on the Ethereum blockchain. Paxos indicated that USDG will eventually be available on other blockchains as regulatory landscapes evolve.
Paxos will issue USDG out of Singapore, which the company says meets compliance standards with the Monetary Authority of Singapore’s upcoming stablecoin framework. Qualified entities such as custodians, exchanges, and fintech firms can join the Global Dollar Network by invitation.
The USDG stablecoin will be fully backed by U.S. dollar reserves held by DBS Bank, Singapore’s largest bank. USDG is pegged 1:1 to the U.S. dollar, backed by dollar deposits, short-term U.S. government securities, and cash equivalents to ensure it can be redeemed for fiat currency.
Paxos head of product, Ronak Daya, highlighted that the partnership with DBS will support “enterprise-level stablecoin adoption.”
USDG and the Global Dollar Network enter a stablecoin market currently dominated by two major issuers: Tether (USDT), with 56% market share, and Circle’s USD Coin (USDC), which holds 27%, according to DefiLlama.
Bitcoin exchange-traded funds (ETFs) in the U.S. saw their second-largest day of outflows on Nov. 4, just before the country’s highly anticipated election.
According to CoinGlass, the 11 spot Bitcoin ETFs recorded a net outflow of $541.1 million. BlackRock’s iShares Bitcoin Trust ETF (IBIT) was the only one to secure inflows, totaling $38.4 million.
This marks the largest outflow day for Bitcoin ETFs since May 1, when $563.7 million was withdrawn after Bitcoin dropped 10.7% to $60,000.
Ahead of the Nov. 5 U.S. election, Bitcoin traders are trimming their positions, causing Bitcoin to fall 4.6% over the past week and 1.7% in the last 24 hours, settling around $68,000. The Fidelity Wise Origin Bitcoin Fund (FBTC) experienced the largest outflow at $169.6 million, followed by ARK’s 21Shares Bitcoin ETF (ARKB) with $138.3 million.
Nov. 4 also marked the second consecutive trading day of outflows after seven days of consistent inflows, as reported by CoinGlass.
Grayscale’s two Bitcoin funds collectively faced $153.2 million in outflows. The Grayscale Bitcoin Trust (GBTC) lost $63.7 million, while its smaller counterpart recorded $89.5 million in outflows, representing the fifth and third largest outflows for the day, respectively.
In the prior week ending Nov. 1, U.S. Bitcoin funds had a net inflow of $2.2 billion, though it ended with a $55 million outflow.
CoinShares head of research, James Butterfill, noted that inflows were driven by optimism for a potential Republican victory. “As polls have turned, we saw minor outflows on Friday, highlighting how sensitive Bitcoin is to the U.S. elections at present,” he explained.
The election polls show Kamala Harris and Donald Trump nearly tied, with Harris holding a slight 1.2-point lead as of Nov. 4, according to FiveThirtyEight. Meanwhile, on crypto betting platform Polymarket, Trump’s odds dipped from 67% on Oct. 30 to 59% on Nov. 3.
The Republican candidate remains favored by the crypto industry, with some traders speculating that a Trump victory could propel Bitcoin to $100,000.
Microsoft may face potential shareholder lawsuits if it decides against investing in Bitcoin and the cryptocurrency’s value subsequently rises, according to a policy research center supporting a proposal for the tech giant to consider Bitcoin.
In December, Microsoft shareholders are set to vote on whether the company should evaluate investing in Bitcoin, a proposal put forth by the National Center for Public Policy Research (NCPPR). Ethan Peck, deputy director of the NCPPR’s Free Enterprise Project, suggested that the proposal could legally pressure Microsoft. “So should Microsoft publicly and explicitly determine in this assessment (undoubtedly based on shaky and biased morale) that it’s not in the best interest of Microsoft shareholders to purchase any Bitcoin, and then Bitcoin proceeds to increase in value (as it likely will), then there may be grounds for shareholders to sue the Company,” Peck stated.
Microsoft’s board has recommended that shareholders vote against the proposal, asserting that it already reviews a “wide range of investable assets,” including Bitcoin.
Peck indicated that even if the proposal is voted down, it has sparked an “important dialogue” with Microsoft and might lay the groundwork for a stronger proposal in 2025. “Whether or not this proposal passes, what Bitcoiners have done over the past week in forcing Microsoft to pay attention to this has been a massively important step toward the desired outcome of the proposal, at Microsoft and other large companies,” he added.
The NCPPR, which identifies itself as a “non-partisan, free-market, independent conservative think tank,” cited MicroStrategy’s Bitcoin investment success as an example in its pitch to Microsoft, noting that MicroStrategy’s Bitcoin strategy has outperformed Microsoft by over 300% this year.
Bitcoin is currently trading at $67,035, down 8.8% from $73,562 six days ago when it nearly reached a new all-time high.