Events in the cryptocurrency market significantly influence the popularity of bitcoin. Following the support of pro-crypto candidates in the United States and the Federal Reserve's rate cut, the demand for BTC has notably increased.
BlackRock's Leading Role
According to the latest market data, US spot BTC ETF issuers registered a net cash inflow of $1.38 billion on Thursday, the highest amount since the historic approval of these funds. BlackRock’s IBIT registered a net cash inflow of about $1.12 billion, thus holding approximately $34.2 billion worth of bitcoins. Fidelity’s FBTC registered the second-largest net cash inflow of about $190 million, totaling $14.58 billion in BTC. Overall, US spot BTC ETF issuers hold about $78.5 billion worth of bitcoins.
Impact on BTC Price
Remarkably, more than 24k bitcoins, worth over $1.8 billion, have been withdrawn from various cryptocurrency exchanges over the past two days. Having printed a new all-time high above $76k, Bitcoin price is expected to grind higher in the coming weeks. Amid the rising adoption by nation-states, institutional investors, and retail traders, Bitcoin price could easily reach a six-figure dollar range before the end of this year or possibly early 2025.
US Government Plans
The United States is expected to follow the path of El Salvador in accumulating bitcoins to counter the ballooning debt crisis. The US government has promised to accumulate 1 million BTCs in five years, which will further escalate the supply vs demand crunch on the bitcoin market.
The increasing interest in bitcoin, supported by political and economic factors, indicates the significant influence of cryptocurrencies on global markets. Expectations of further price growth prompt market participants to take active measures.
