Bitcoin Surges to New Highs, Attracts Billions from Wall Street

The recent multi-day surge in Bitcoin’s value has captured the attention of Wall Street, resulting in billions of dollars being invested in crypto ETFs since the start of November and the U.S. elections.

Record Inflows and Rapid Price Gains

Bitcoin investors traded over $1 billion of BlackRock’s IBIT fund within the first 25 minutes of U.S. market trading, contributing to a trend driven by Bitcoin that has encouraged both retail and institutional investment. This trend has led to record-breaking volumes, with Bitcoin experiencing its largest single-day and weekly gains in its history.

Inflows to U.S. spot BTC exchange-traded funds surpassed $1 billion for the second time this month, pushing Wall Street’s spot BTC ETF group to $90 billion in assets by mid-November, just 10 months after trading began.

Bitcoin took nine years to reach $20,000, but in the past week alone, it surged by nearly 24% to hit an all-time high of $89,864. While some long-term holders took profits, the overall sentiment remained bullish, with expectations of reaching $90,000 imminent.

Bitcoin Sparks Crypto Market Growth

The broader crypto market experienced a surge in enthusiasm following the U.S. elections, as the victory of pro-crypto politicians reduced reputational risks associated with digital assets. This optimism led to a total crypto market cap of $3.04 trillion, surpassing previous highs.

Bitcoin accounted for the majority of the $600 billion influx into cryptocurrencies, with altcoins like Ethereum, Solana, and Dogecoin also seeing significant gains in the past week.

Altcoin Demand on the Rise

Despite Bitcoin leading the market rally, experts believe that altcoin demand is still in its early stages during this bull run. Factors such as new investors entering the market, supportive legislation, and overall industry growth are expected to drive further investment into altcoins in the coming months.

“We see a typical cycle playing out. Bitcoin’s rally usually precedes capital flows into other layer 1s like Ethereum and Solana before moving into altcoins. FOMO indicators have not yet reached peak levels.” – Thomas Perfumo, Kraken’s head of strategy