Bitcoin frenzy spun $1b volume in 25 minutes for BlackRock’s ETF

by

As a seasoned crypto investor with over a decade of experience navigating the volatile digital asset market, I must say this recent surge in Bitcoin and the broader crypto market feels like a wild rollercoaster ride that I wouldn’t trade for anything else! The sheer speed at which capital is flowing into Bitcoin ETFs, like BlackRock’s IBIT fund, is nothing short of astonishing.

The significant rise in Bitcoin over multiple days, reaching unprecedented peaks, has piqued the interest of Wall Street. Since early November, including the U.S. elections period, a substantial amount of money has been invested into crypto Exchange-Traded Funds (ETFs).

Within the first quarter-hour of U.S. market trading, investors dealing with Bitcoin (BTC) exchanged approximately a billion dollars worth of BlackRock’s IBIT fund. This trend, driven by Bitcoin, has been encouraging both retail and institutional investments. The initial trading volumes on Tuesday, November 12th, built upon astounding numbers from the previous day, Monday, November 11th, as Bitcoin experienced its largest one-day and weekly increases in its fifteen-year lifespan.

For the second time this month, more than a billion dollars flowed into Bitcoin exchange-traded funds (ETFs) based in the U.S., marking a significant milestone. By mid-November, these ETFs collectively held around $90 billion in assets, just ten months after they started trading.

In the last seven days, Bitcoin surged by approximately $20,000, reaching an unprecedented high of $89,864 – almost a 24% increase. This impressive growth brings the token close to the $90,000 mark, although some long-term investors have chosen to cash out their gains.

Today, IBIT surpassed a billion dollars in trading volume within approximately 25 minutes, shattering its previous record set yesterday and setting a new pace. The market’s enthusiasm remains unabated…

— Eric Balchunas (@EricBalchunas) November 12, 2024

Bitcoin boosts crypto market

The crypto market experienced a fresh wave of excitement after the U.S. general elections. The success of a number of politicians favorable towards Bitcoin and cryptocurrencies, such as President-elect Donald Trump, appears to have reduced the perceived risks in terms of reputation for digital assets.

In simple terms, as Bitcoin soared dramatically, the overall value of the cryptocurrency market also rose significantly. At the moment the data was collected, the combined worth of all cryptocurrencies reached an impressive $3.04 trillion, breaking its highest record from 2021.

Approximately $600 billion of newly invested money primarily flowed into Bitcoin (BTC) accounts, with other cryptocurrencies (altcoins) receiving smaller portions.

Over the past seven days, I’ve observed substantial growth in popular altcoins such as Ethereum (ETH), Solana (SOL), and even meme-based coins like Dogecoin (DOGE). These digital assets have seen leaps of up to triple digits in their value.

Despite altcoin demand being relatively small during this recent bull market, according to Thomas Perfumo, Kraken’s head of strategy, it is still in its early stages. Perfumo believes that increased interest from younger investors in the crypto world, favorable legislation such as Senator Cynthia Lummis’ Bitcoin reserve bill, and overall growth within the blockchain industry will cause familiar trends to intensify significantly, as suggested through email correspondence with crypto.news.

It appears that the usual pattern is unfolding. Bitcoin is spearheading the market surge, usually triggering investments in other first-layer cryptocurrencies such as Ethereum and Solana. Then, the investment often shifts towards altcoins. However, we haven’t noticed the extreme fear of missing out (FOMO) indicators that would typically signal a warning.

Thomas Perfumo, Kraken’s head of strategy

Read More

2024-11-12 19:34